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Crypto Firms Dominate World Economic Forum Despite Recent Slump

Crypto Firms Dominate World Economic Forum Despite Recent Slump

Despite the recent downturn in the fortunes of the cryptocurrency market, the turbulence has not discouraged crypto enthusiasts or crypto firms from making quite a statement at the World Economic Forum (WEF) at Davos. The World Economic Forum brings together leaders from both the economic and the political spectrum. 

As a result, we have seen several activities spring up on the sidelines of the event, including a “Bitcoin Pizza stall” and a Liquidity Lounge. 

Encouraging Faster Adoption Of Crypto 

Several crypto firms and enthusiasts are hoping that their presence at the sidelines of the World Economic Forum would encourage faster adoption of blockchain technology and crypto, which is largely unregulated. Small traders have increasingly pivoted towards crypto despite warnings from regulators that the assets in the space can be extremely high risk. 

The high visibility of crypto at Davos comes amidst the backdrop of a turbulent few weeks for the crypto space after the decimation of LUNA and the UST stablecoin, both of which lost nearly all their value. Speaking about the unprecedented price drop, the CEO and co-founder of Circle Internet Financial, the entity behind the USDC stablecoin, Jeremy Allaire, stated, 

“What surprised me was just how fast it completely imploded into nothing. To see something that seemed like an apparent, high growth competitive thing just completely implode to zero in 72 hours, I’ve never seen anything like that.”

Crypto Continues To Shine At Davos 

Despite the recent downturn, crypto firms have made quite an impression at the WEF. One such company, Securrency Inc, backed by Abu Dhabi, has come to Davos for the first time and hopes to, in its own words, “build relationships and network.” and also show how traditional finance and new technologies can be bridged. 

The company has even set up its own panel on digital currencies, mimicking the World Economic Forum, just outside the security perimeter of the main conference. One of the world’s largest stablecoins, Tether, has come up with offering passers-by at the event free pizza to celebrate Bitcoin Pizza Day, which fell on 22nd May when Lazlo Hanyecz paid for two pizzas using 10,000 BTC. 

Impact Of Blockchain To Feature In Main Discussion

While most of the crypto-related entities are at the sidelines of the WEF, the impact of blockchain technology will feature in the main discussion, with Anthony Scaramucci, founder of SkyBridge Capital, to present the sustainability goals of bitcoin, and will also focus on the cryptocurrency’s carbon footprint. The WEF is also expected to host Davos’s 5th Annual Blockchain Central. The event will feature leaders from the blockchain and crypto space, along with government representatives. 

Slump Continues As Bitcoin Drops 

Bitcoin, which has slipped below the $30,000 mark, is at its lowest levels since the end of 2020. As recently as November 2021, BTC had hit its all-time high of over $68,000 and has currently lost over half its value. However, companies in the crypto space remain optimistic, with Chief Operating Officer of CasperLabs, Cliff Sarkin, stating, 

“We’re used to this, and as the market gets bigger, the peaks and valleys will be smoother.”

However, several experts are of the opinion that the crypto space has entered a winter season and that the market should brace for a year-long bitcoin price correction, according to Kavita Gupta, founder of the Delta Blockchain Fund. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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