Representatives from major crypto companies traveled to Abu Dhabi last week to connect with wealthy Middle Eastern investors who could breathe new life into the struggling sector.
Officials from the UAE’s massive $330 billion sovereign wealth fund are believed to have attended. problem? no one could find them.
Some of the biggest names in the crypto world jetted into the UAE capital, juggling between multiple conferences, exclusive beach parties, and a gathering of luxury yachts. They exchanged information about private dinners with industry figures and tracked down people who may have ties to the royal family.
Michael Saylor appeared at the Bitcoin MENA Conference. He founded Strategy, the largest Bitcoin buyer, whose stock price has more than halved since mid-year.
Saylor said he traveled around the Gulf region, meeting with “hundreds of investors” including sovereign wealth funds, and pitching his vision to buy more digital currencies through a variety of financial tools.
He showed slides that he claimed he had shared with potential backers. They portrayed Strategy as a Bitcoin-powered rocket ship aiming for a “$20 trillion idea.”
The head of Metaplanet has announced plans to raise funds through a new investment program called “MARS”. Metaplanet is a Japanese hotel company that has switched to Bitcoin holdings. Its stock also plummeted.
Other companies seeking investment included Dominari Holdings, an investment bank favored by the Trump family, and the investment arm of South Korean company Hanwha Group. Hanwha wants to make Abu Dhabi a regional hub as it expands its cryptocurrency offering.
UAE shows growing interest in cryptocurrencies
However, the UAE continues to show strong interest in cryptocurrencies.
As reported by Cryptopolitan, Binance, the planet’s largest cryptocurrency exchange, announced last week that it had received full approval from Abu Dhabi’s financial regulator to operate a global trading system from the capital. The government-backed UAE Investment Company bought Binance for $2 billion earlier this year.
A unit of the sovereign wealth fund Mubadala said in November that it had tripled its investment in Bitcoin to the equivalent of about $518 million. Separately, Mubadala reported making $567 million worth of Bitcoin investments through exchange-traded funds during the month. A representative for Mubadala declined to comment.
The Abu Dhabi government is attracting crypto startups to set up offices in the city’s financial district. They offer early funding, free office space, and other perks.
The conference will be divided into two camps.
Conference participants were divided into two groups during the week. Enthusiasts attended Bitcoin conferences with Saylor. His admirers followed him around to take pictures, but his security team begged them to give them space. Conference organizers gave Saylor a bright orange coat with the Bitcoin logo sewn into the front pocket.
Zhao Changpeng took to the stage wearing orange sneakers with the words “Trump. Cryptocurrency President” printed on them.
A few days ago, Chao and Binance leaders entertained visitors at the Grand Prix in Abu Dhabi on a three-decker yacht moored alongside a number of other giant boats. Hundreds of people celebrated late into the night on a deck equipped with mirror balls, smoke machines and laser lights.
On Monday we had dinner at the St. Regis Hotel. Paul Manafort was also in attendance. Trump’s former campaign manager and another pardon recipient. He told conference attendees that he helped persuade President Trump of the value of cryptocurrencies.
The second group met at the Abu Dhabi Finance Week conference downtown. Leaders of American cryptocurrency companies Coinbase and Circle interacted with prominent Wall Street figures. In addition to Ray Dalio and Blackstone chief Steve Schwartzman, representatives from existing banks UBS and HSBC were also in attendance.
Requires years of relationship building
Basil Al Askari co-founded Abu Dhabi-based crypto brokerage MidChains with support from Mubadala. He noted that many UAE new entrants hope to secure quick agreements. Some people mistakenly assumed that he represented a major UAE investor simply because he was from the UAE and wore traditional costume.
Aside from rare exceptions, it typically takes several years of building relationships and developing a local business before a sovereign wealth fund or large family office invests, he said.
As mentioned in a Wall Street Journal report, RockawayX called the UAE “the new Wall Street of digital finance” in its presentation. The venture capital firm has about $1.8 billion under management. A few days before that, it announced an acquisition by an Abu Dhabi-backed company.
“They’re not looking for people to parachute in and leave with a bag of cash,” said Samantha Borbot, RockawayX’s chief growth officer. The company opened its headquarters in the UAE and launched a local program for crypto projects. “You have to get some real skill in the game and stay the course.”
