For longtime cryptocurrency believers, this week is straight out of a fairytale.
On Friday, industry leaders like Coinbase CEO Brian Armstrong and Trump administration crypto czar David Sacks attended a blowout inauguration party in Washington, D.C., to celebrate the “first crypto president” and their arrival as a force in American politics.
Immediately afterward, many packed their suitcases and headed across the Atlantic for the Swiss Alps, where they’re being welcomed by the global financial elite at the World Economic Forum’s annual meeting in Davos.
Talk about a series of “pinch me” moments for an industry that, not long ago, was better known for its associations with fraud, scams, and con artists like Sam Bankman-Fried.
“For the first time, these guys actually want to have a conversation,” said Chris Maurice, founder of Yellow Card, Africa’s largest stablecoin exchange. Maurice, a first-timer at Davos, said he’s attending to deliver talks and drop in on private events with central bank leaders, finance ministers, and corporate executives. This hadn’t happened in nearly a decade running the company, he added.
“Now, we’re looking to have stuff signed with major players — major, slow-moving players — within a matter of two months,” Maurice said.
For years, crypto industry leaders have made the annual pilgrimage to the ski town of Davos, hoping to gain recognition and airtime with the policymaking establishment. In 2023, the gathering of around 3,000 power brokers took place right after the collapse of cryptocurrency exchange FTX and founder Bankman-Fried’s subsequent arrest. Nevertheless, various “crypto houses” lined Davos’ main street as attendees cracked jokes about their relative obscurity.
Last year, Davos took place immediately following the Securities and Exchange Commission’s approval of exchange-traded funds that track the price of bitcoin. The move established a bridge between traditional finance and crypto — and though artificial intelligence was all anyone cared to talk about, several high-profile crypto executives parlayed the energy from their big win all the way to Switzerland.
The amount of crypto projects that I have never heard of but has enough money to rent a building in Davos this week is quite baffling
— hagaetc.eth (@hagaetc) January 16, 2024
Still, crypto interests were largely not represented in backroom conversations where the deals get done.
This year is markedly different.
Armstrong, one of the most powerful crypto players globally, is attending Davos to discuss the future of crypto at the Wall Street Journal House. In years past, Armstrong has sent other Coinbase executives in his stead. Last November, however, Coinbase was among the biggest donors to pro-crypto super PACs that poured $135 million into dozens of congressional races, elevating crypto to a campaign issue and resulting in what Armstrong called “America’s most pro-crypto Congress ever.”
Meanwhile, a review of confidential summit schedules by The Standard shows that crypto founders are meeting one-on-one and in small groups with the world’s biggest financial technology and credit card companies.
“A year ago we were all part of the ‘you guys belong in jail’ group,” said Bay Area-based Konstantin Richter, CEO of blockchain infrastructure company Blockdaemon. But now, as Richter attends Davos for the first time, “there’s a door open, and we’re invited into the room. This is the first time it’s happening.”
Blockdaemon is valued at more than $3 billion, and Richter has a packed schedule in Davos, something he chalks up to companies, investors, and governments not wanting to lose out on the current boom.
“We’re like the young, hot models of Davos,” Richter said, who attended the crypto ball in Washington before departing for Europe.
| Source: montipora/Getty Images
Maurice, whose company’s latest funding round was led by San Francisco-based Blockchain Capital, said Trump’s election victory played a role in boosting mainstream interest in crypto.
“All of a sudden, Trump started talking [about crypto] … and everyone’s like, ‘Oh crap, what am I missing?’” Maurice said, adding that he had to buy his first-ever suit for Davos.
Maurice never considered going in years past but decided to shell out $13,000 to sleep in what he describes as a “matchbox” because crypto cheerleaders like the Trump family and Elon Musk are now “some of the most powerful powers on the face of the Earth.”
“The entire narrative of the industry has changed now. It’s no longer ‘Are crypto people going to be at the table when decisions are being made?’” Maurice said. “The question is ‘Are these decisions being led by crypto people?’”
Richter is more sober about his industry’s tight embrace by the mainstream institutions at Davos. “It’s too soon to make statements about how we’re part of the establishment. We’re too close to being reminded that we’re all scammers,” he said.
With crypto executives looking to strike it big at Davos and newfound regulatory clarity expected from the Trump administration, founders expect San Francisco to reap the rewards. The unfolding boom may bring in “cryptonians” from hubs in New York, Miami, and Singapore because of San Francisco’s high concentration of engineers and venture capital funding, along with digital asset technology’s intersection with AI.
Tomasz Tunguz of Theory Ventures is ready to fund crypto startups, while crypto-focused funds in Silicon Valley like Haun Ventures, Blockchain Capital, and Dragonfly are expected to deploy capital in the coming months.
But for now, the crypto world’s week of celebration continues as its denizens jump from the hottest inauguration party in D.C. — Snoop Dogg performed — to the most exclusive après-skis in Davos, flowing with Champagne and fondue.