90 Percent of Cryptocurrency Firms May Be Bankrupt in Six Months: Swiss Blockchain Federation

The Swiss Blockchain Federation has reported that up to 90 percent of cryptocurrency and blockchain firms in Switzerland could be bankrupt in six months without any government intervention. This is due to the ongoing COVID-19 situation which has severely hampered the industry’s activities.

The COVID-19 outbreak has had dire effects not just on the global economy but on various sectors of industry as well. British Airways has announced that they will be cutting tens of thousands of jobs over the next few months and many countries including the United States are predicted to face a recession.

While a global corporation like British Airways might have a difficult time bouncing back despite being a giant of the industry, smaller companies will find themselves even more vulnerable, especially if they are in an emerging industry.

According to the Swiss Blockchain Federation, about 90 percent of firms in the crypto valley are at risk of going bankrupt due to the current situation.

Many Cryptocurrency Firms are at the Risk of Closure

This revelation means that thousands of jobs are at risk across the board. Lorenz Furrer, Vice President of the Swiss Blockchain Federation, said that the crypto valley could very well ‘become the death valley’ if change does not occur.

This information was determined by the Federation from reaching out to the 800 cryptocurrency firms in Switzerland and asking them how the pandemic has affected their business.

Source: Swiss Blockchain Federation

The survey, conducted between March 31 and April 3, 2020, reported that 80 to 90 percent said that they will likely be bankrupt in the next six months without the government offering some assistance.

Blockchain Startup Haven Takes a Hit

Switzerland has, in the last few years, become a haven for blockchain entrepreneurship. Its legislation has been favorable towards the industry, so much so that Facebook’s Libra project is based in the country.

The burgeoning industry provides employment to up to 4,000 people, many of whom are facing employment insecurity. Blockchain and cryptocurrency startups might be more vulnerable because the pandemic has significantly reduced investments across the globe and young companies do not have enough revenue to fall back on or qualify for government loans.

Recession Cryptocurrency

It is also worth noting that startups rely on networking events and the like for fundraising efforts as does the blockchain and cryptocurrency industry.

The Crypto Valley Association has already been forced to postpone its annual conference and a slew of similar events within the sector have been postponed or canceled in light of the outbreak.

Do you want to Be In Crypto?Join our Telegram Trading Group for FREE Trading Signals,a FREE Trading Course for Beginners and Advanced Tradersand a lot of fun!

Images courtesy of Shutterstock, Trading View and Twitter.

Disclaimer. Read MoreRead Less

As a leading organization in blockchain and fintech news, BeInCrypto always makes every effort to adhere to a strict set of editorial policies and practice the highest level of journalistic standards. That being said, we always encourage and urge readers to conduct their own research in relation to any claims made in this article.
This article is intended as news or presented for informational purposes only. The topic of the article and information provided could potentially impact the value of a digital asset or cryptocurrency but is never intended to do so. Likewise, the content of the article and information provided within is not intended to, and does not, present sufficient information for the purposes of making a financial decision or investment. This article is explicitly not intended to be financial advice, is not financial advice, and should not be construed as financial advice. The content and information provided in this article were not prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making any investment decisions.
The author of this article may, at the time of its writing, hold any amount of Bitcoin, cryptocurrency, other digital currency, or financial instruments — including but not limited to any that appear in the contents of this article.

Molly Jane is a Russian Literature major from California with a background in writing. She joins CurrencyTimes after working as a freelance journalist and blogger.

Latest articles

Travala’s Booking Business Booms as Global Lockdown Eases

Various aspects of the global economy have taken significant hits since the coronavirus pandemic began, and the travel industry has been no different....

OmiseGo Network Utility Jumps and Prices May Follow

The OMG Network scored a partnership that will prove its utility to deliver faster and cheaper transactions than Ethereum. Key Takeaways The OMG Network has...

Ethereum Layer-2 Scaling Initial Deployments Successful

Ethereum BUY NOW is on the move in terms of development and price with the recent successful deployment of a number of layer-2...

Bitcoin Price Prediction: Bitcoin (BTC) Can Slump to $8.8k If It Breaks $9.3k Support

Bitcoin (BTC) Price Prediction – May 31, 2020Yesterday, BTC/USD pair retested the $10,000 resistance zone and was repelled. It is anticipated that as...

Related articles