Adrien Treccani, the CEO of Switzerland-based cryptocurrency firm Metaco, has stated that the recent correction in digital asset markets will likely wipe out a section of start-ups in the country.
Speaking during an interview with Swiss Info on July 13, Treccani stated that the market crash would lead to cataclysmic consequences for businesses in the sector, projecting that the crypto start-up scene will likely turn into a new phase within six months.
“The market crash is going to be cataclysmic for a lot of Swiss start-ups. I predict that around 20% to 30% of them will die. They will disappear within the next six months,” he said.
Market crash to result in new opportunities
However, despite the projected crash, Treccani maintained that the wipe-out would benefit the sector as it would eliminate weaker players. According to the executive, the current market movement is a bubble burst that will potentially usher in new opportunities.
“This bursting bubble will filter out the noise and simplify the market. Normally after a big collapse, new opportunities emerge,” said Adrien Treccani.
Despite the market movement impacting crypto business prospects, most start-ups remain resilient within the country. Notably, Switzerland is known to have a robust blockchain industry due to friendly regulations, a scenario that is attracting more players to the country.
Crypto businesses readjusting operations
Globally, the market crash has forced most cryptocurrency-related businesses to readjust their operations to adapt to the new reality. Among the notable impacted businesses is cryptocurrency exchange Coinbase, which has since announced employee layoffs alongside imposing a hiring freeze.
Additionally, crypto lending platform Celsius has restructured its business after pausing withdrawals citing challenges with liquidity.
Overall, the market collapse is led by Bitcoin, which lost its value by over 70% from the all-time high of almost $68,000 recorded in November last year. The price collapse accelerated following the Terra (LUNA) ecosystem crash, where investors lost significant amounts.
Consequently, the crash has triggered an influx of regulatory proposals that will likely be key in determining how the market recovers.