Germany Continues Bitcoin Adoption Despite Rocky Market
German institutions invested in blockchain technology and startups working with Bitcoin have all enjoyed relatively smooth financial times since the Coronavirus.
- Böerse Stuttgart's Bitcoin trading app reaches 100,000 retail users.
- Commerzbank's research and development arm, Main Incubator, reports secure investments.
- Despite the financial benefit of working in the technology sector, face-to-face meetings cannot be replaced by telecommunications.
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The broader market crash brought on by fears of the coronavirus has been felt around the world. But as startups and investment firms in the U.S. buckle up for a bumpy Q2, some crypto companies in Germany are faring rather well.
Böerse Stuttgart Bitcoin App Hits 100,000 Users
Since Bison was launched in 2019, the app now hosts over 100,000 users.
The app lets users buy and sell major cryptocurrencies, like Bitcoin, XRP, and Ether. Reports shared with Crypto Briefing indicate that BTC is the most popular digital asset at current.
Dr. Ulli Spankowski, the CEO of Sowa Labs GmbH, which developed the app said:
“The number of active users of BISON has grown by more than 40 percent since the beginning of 2020. Even in the turbulent market phases of the past few months, we have been able to offer the usual simple and reliable trading in cryptocurrencies. On this basis, we intend to increase our user numbers steadily.”
Despite Bitcoin behaving as a risk-on asset, much like stocks, retail investors that make up the majority of BISON’s user base continue to move into the crypto market. During the sell-off of Mar. 12, various post-mortem’s identified Bitcoin holders between 1- to 12-months old as the primary engines behind the downturn.
If BISON can be considered a proxy for retail interest in Germany, many users may be unphased by the latest downturn. For institutions, those that have a stake in blockchain technology are doing just fine.
Pandemic-Resistant Investments With Main Incubator
Commerzbank’s research and investment arm, Main Incubator, has been left relatively unscathed by the latest coronavirus crash.
Part of this has to do with a diverse portfolio of investments in virtual reality technologies, cloud services, and, of course, blockchain technology.
In an interview with Crypto Briefing, CEO of Main Incubator Michael Spitz explained that many portfolio companies have been relatively resistant to the coronavirus. “This is mostly because all the startups we support are technology-based,” he said. “And as tech businesses, they are used to delivering remotely.”
Main Incubator is the number three bank-backed venture firm after Citi Ventures and Goldman Sachs Strategic Investments. CBI Insights reported that Commerzbank has made 39 investments through Main Incubator.
Though the research division is capable of investing up to ~$2.2 million in a company, support also comes in the form of prototyping new products and helping startups build their communities. Naturally, many of the in-person events have taken a toll, and Main Incubator has turned to online platforms to bring parties together.
On this last point, Spitzer reminded that there is no replacement for face-to-face interactions.
“Although this pandemic is forcing users to adopt new technologies, the human aspect due to quarantine is still clearly missing,” he said.