90 Percent of Cryptocurrency Firms May Be Bankrupt in 6 Months:Swiss Blockchain

[Shahinaz]

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.

More : https://beincrypto.com/90-percent-cryptocurrency-firms-bankrupt-six-months-swiss-blockchain-federation/

leave your comments about this

[Pegasus]

This news is no surprise to me. Each cryptocurrency firm is no different from a traditional company. They have to bear operation costs, staff salaries, office fees... If the global economy can't improve, they will face bankruptcy risk. Good news is it's the time to clean up the market from trashy projects.

[Noverteno]

This news is no surprise to me. Each cryptocurrency firm is no different from a traditional company. They have to bear operation costs, staff salaries, office fees... If the global economy can't improve, they will face bankruptcy risk. Good news is it's the time to clean up the market from trashy projects.

I do not think that the situation is so gloomy. Most governments understand the danger of delaying quarantine measures and therefore plan to phase out them. Of course, the global economy is very weakened by the fight against coronavirus and, in all likelihood, a tough global economic crisis awaits us. However, a 90 percent reduction in cryptocurrency related activities is too much. This activity is not as vulnerable as some others, since most of the work is carried out using the Internet, without direct physical contact of people.
I agree that this will ultimately lead to the cleansing of the cryptocurrency market from useless projects.