Business Bypasses Crypto Companies in Davos
2023.01.19 06:41
Business Bypasses Crypto Companies in Davos
By Ray Johnson
Budrigannews.com – The impact of the crypto winter is evident to WEF attendees in the ice and snow on the main Davos street.
In May of last year, a majority of the fancy shopfronts on both sides of the Swiss ski resort’s Promenade street belonged to cryptocurrency businesses making a fortune off of bitcoin.
There are now only a few, and the executives who have made it to Davos have switched from hoodies to blazers, even though it is below zero outside.
On the fringes of the World Economic Forum (WEF) annual meeting, some members of the digital industry quickly distanced themselves from cryptocurrencies.
Jeremy Allaire, CEO of USDC stablecoin issuer Circle, stated, “I hope there is an increased focus on utility value and practical applications of the technology, and less focus on retail investors chasing meme coins.”
Allaire stated to the Reuters Global Markets Forum, “There was a lot of nonsense.”
Raghuram Rajan, a former governor of the Reserve Bank of India, is of the opinion that the decline in digital assets that occurred last year enables investors to concentrate on the actual value of the technology.
He declared, “We’re at the right place now in terms of crypto.”
According to executives in Davos, blockchain technology, appropriate controls and regulation, and the potential disruption it holds for financial services and beyond are now all on their minds.
“We are a plumbing and infrastructure play. Cryptocurrency is the digital asset for which we currently build infrastructure. Dmitry Tokarev, the chief executive officer of, which provides custody services, stated, “Tomorrow it will be different assets.”
“I would ask, “What is the return on that?” about some of the things I saw.” Tokarev continued by referring to the large number of cryptocurrency businesses present at the most recent WEF meeting, which was unusually held in May due to the COVID-19 pandemic.
“The noise has always been ignored by us. Last year, all of our partners were present. This year, they are here,” Tokarev continued.
Since May, a lot has changed in the world of digital assets, with investors turning away from riskier assets in the face of rising interest rates, causing the value of the cryptocurrency market to plummet and some of the major crypto companies to fail.
The market capitalization of cryptocurrencies has decreased by $1.4 trillion, or a third, from its highs at the end of 2021. Additionally, some of the most well-known crypto companies are experiencing financial difficulties or have gone out of business, such as the collapse of FTX.
Denelle Dixon, CEO of Stellar Development Foundation, the organization that provides support for the Stellar blockchain, stated, “There is a place for trading use cases, but they cannot be the singular focus. We need to move to more real use cases and put attention there.”
The topic of responsibility is now being discussed, despite the fact that technology continues to pique interest.
The Swiss bank’s chairman, Colm Kelleher, told a WEF panel that blockchain technology will help banks cut costs. However, he stated that the industry needed to establish the fundamentals, such as controls against money laundering.
Kelleher stated, “We kind of dodged a bullet,” noting that the decline in the value of cryptocurrencies had not resulted in systemic issues. There were investors who were interested in investing in coinage. And we had to decide what was appropriate for those investors,” he continued.
In Davos, Animoca Brands, a blockchain gaming developer based in Hong Kong, received support from Yat Siu.
Siu stated, “These are companies that generate revenue and have significant cash positions.” They are businesses worth a billion dollars.
Anthony Scaramucci, the founder of SkyBridge Capital, stated, “There’s nothing more establishment than the World Economic Forum.” Crypto is attempting to establish its presence. Despite losses last year, Scaramucci maintains a bullish perspective on cryptocurrency.
Back on the Davos Promenade, there are still hints of crypto’s lost luster.
A Mercedes in a vivid orange was parked immediately outside a pavilion promoting blockchain early in the week.
A copper-colored bitcoin symbol replaced the automaker’s logo on the hood.
A white slogan read, “On the tires.” We rely on.”
