Crypto Is Down, But It’s Not Out
The crypto sector was well-represented at the World Economic Forum in May 2022.
After eight months, numerous bankruptcies, and a major collapse, the industry is still present in Davos, Switzerland, albeit in a more subdued manner. The Promenade, the road outside the main Congress Centre, still has several crypto companies advertising or operating “houses,” lounges, meeting rooms, or event stages intended to introduce Davos attendees to their projects.
But there are much fewer businesses here. Those that are still operating include Circle, the Global Blockchain Business Council, and the Filecoin Foundation. In contrast to 2022, when there were crypto panels everywhere, the crypto industry will be integrated into the major tech and financial titans around them by 2023. Free bitcoin-themed pizza stands and intensive street marketing are no longer present.
The market might be involved in this. Entwistle believes that many of the crypto projects advertising houses in 2022 likely booked them well in advance because the forum’s annual meeting was originally scheduled for January 2022 but was postponed due to an increase in COVID-19 cases globally. In other words, these companies most likely reserved their properties and advertisements while the cryptocurrency industry was still in its previous bull market.
Bookings for 2023, on the other hand, are likely to have occurred after prices began to fall, resulting in tightened budgets, which may account for the much smaller presence this year.
As in previous years, the main forum’s conference features several panels discussing different facets of the industry, but with a particular focus on a limited number of topics, such as central bank digital currencies and similar topics.
The industry was in disarray after FTX failed. The interactions between various now-bankrupt crypto lenders raised concerns about widespread contagion.
The crypto industry’s Davos contingent may provide a snapshot of whether this differentiation will occur.