- Despite recent losses, industry representatives have flocked to the annual business meeting to promote their products and services.
- Davos has become a showcase for crypto companies in view of the need to develop new businesses and overcome the current critical stage in the sector.
Marketing experts say that when your business is in crisis is when it needs promotion the most. That is exactly what companies linked to the crypto industry are doing, promoting their products and services at the annual meeting of the World Economic Forum in Davos.
From a small free bitcoin pizza stall to a “Liquidity Lounge” and large exhibitors, they are part of the marketing and public relations strategy of the companies present, despite the collapse of the prices of crypto assets in the markets in The last weeks.
The sprawling group of crypto executives landed at the resort located at the foot of the Swiss Alps to do business and promote the adoption of blockchain technology among the world’s financial elite and government representatives attending the conference.
The Davos meeting this year is held in person again, after two years marked by the coronavirus pandemic. The drastic changes recently experienced and the challenges generated by the war in Ukraine, the energy and food deficit and the decarbonisation of the world, give this year’s business event a special touch.
The Industry Reaffirms its Presence in the Economy
That is why despite the crypto crisis that has caused gigantic losses to companies in the sector and decreased the market value of cryptocurrencies to about $800 billion, industry representatives are reaffirming the presence of this emerging sector in the global economy.
After the recent collapse of Terra – Luna, there has been a financial Tsunami in the cryptocurrency market that has wiped out its market capitalization. A situation that the regulators of the main economies had already foreseen and announced to small investors, due to the high risk of this type of asset.
Commenting on Luna’s sinking, 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." Another who traveled to Davos this year was the CEO of Securrency Inc, Dan Doney, with the intention of “building relationships and networks”. The Abu Dhabi-backed financial markets infrastructure company executive is looking for businesses that link blockchain with traditional finance.
Crypto Takes Over High Street
Crypto companies have taken over the main street of Davos, right across from the conference center, setting up small kiosks or large display stands. Stablecoin Tether offers a slice of pizza to passersby to celebrate Bitcoin Pizza Day on May 22, 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 its value in the past two months. On Monday morning (09:10 ET) it was trading at $30,360, according to Coinmarketcap, after trading as high as $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 collapse of cryptocurrencies. Inside the forum, some of the banks present, such as Citigroup (NYSE:C) and Credit Suisse, also organize conferences related to the industry. Among the topics addressed are the carbon footprint and the future of cryptocurrencies, as well as panels on decentralized finance.
On the crypto industry's presence at the conference this year, social network Hub Culture's chief strategy officer, Stan Stalnacker, said that "It's been rising outside and inside the gates." According to Stalnacker estimates, around 50% of the Davos showcases have been occupied by crypto companies to capture business opportunities.
