- Despite recent losses, industry representatives have flocked to the annual business meeting to promote their products and services.
- The World Economic Forum Annual Meeting in Davos has become a showcase for crypto companies as the need to develop new businesses and overcome the current critical stage in the sector has become more prevalent.
Marketing experts say that when a business is in crisis, what it needs most is promotion. That is exactly what companies in the crypto industry have taken to doing—promoting their products and services at the annual meeting of the World Economic Forum in Davos.
Everything, from a small free bitcoin pizza stall, to a “Liquidity Lounge” and varying exhibitions, is part of the marketing and public relations strategy of the companies present, put in place to help assuage the plummet of prices in the crypto market that has dragged on in recent weeks.
The sprawling group of crypto executives landed at the resort, located at the foot of the Swiss Alps, with the goal of doing business and promoting the adoption of blockchain technology among the financial elite and government representatives attending the conference from around the world.
Davos is back after two years of suspension caused by the coronavirus pandemic. The drastic changes experienced during this time, the challenges raised by the war in Ukraine, the energy and food deficit, as well as the decarbonisation of the world, give this year’s business event a special touch with potentially world changing effects.
The Crypto Industry Reaffirms Its Presence in the Economy
Despite the crypto crisis that has caused gigantic losses to companies in the sector, and lowered the market’s value to approximately $800 billion, industry representatives are reaffirming the emerging sector’s presence in the global economy.
In the wake of the recent collapse of the Terra ecosystem, a financial Tsunami has swept over the cryptocurrency market, wiping out its market capitalization. Regulators of major economies had already foreseen the possibility of such events, and warned small investors about the high risk digital assets.
Commenting on the dramatic fall of LUNA and the UST, Jeremy Allaire, CEO and co-founder of Circle Internet Financial, which runs the US dollar-pegged stablecoin USDC, said:
"What surprised me was just how fast it completely imploded into nothing." He added, "to see something that seemed like an apparent, high growth competitive thing just completely implode to zero in 72 hours, I have never seen anything like that."
CEO of Securrency Inc Dan Doney has also made the journey to Davos this year with the intention of “building relationships and networks”. The executive of the Abu Dhabi-backed financial markets infrastructure company is looking for initiatives that link blockchain and traditional finance.
Crypto Takes Over the High Street
Crypto companies have taken over the main street of Davos right across from the conference center, setting up small kiosks and large display stands. The Tether stablecoin offers a slice of pizza to passersby to celebrate Bitcoin Pizza Day on May 22nd, 2010, when American programmer Laszlo Hanyecz bought two pizzas for 10,000 bitcoins.
Bitcoin, the world’s largest cryptocurrency by market capitalization, has lost more than half of its value in the past two months. On Monday morning (09:10 ET) it was trading at $30,360, according to CoinMarketCap, after trading at a high of $69,000 in November.
"We're used to this, and as the market gets bigger, the peaks and valleys will be smoother," Cliff Sarkin, chief operating officer of blockchain technology provider CasperLabs told Reuters. The Casper token (CSPR) was also affected by the market decline of cryptocurrencies.
Within the forum itself, some of the banks present, such as Citigroup and Credit Suisse, have also organized conferences related to the industry. Among the topics being addressed are the carbon footprint and the future of cryptocurrencies, while informatory panels on decentralized finance have also been set up.
On the crypto industry's presence at the conference this year, Chief Strategy Officer of the Hub Culture social network Stan Stalnacker, said that "It's been rising outside and inside the gates."
According to Stalnacker’s estimates, around 50% of the Davos showcases have been crypto companies looking to capture business opportunities.