Representatives from major cryptocurrency firms went to Abu Dhabi last week to connect with wealthy Middle Eastern investors who might breathe new life into a struggling sector.
Officials from a massive $330 billion sovereign wealth fund in the United Arab Emirates were supposedly in attendance. The problem? Nobody could find them.
Leading figures in the cryptocurrency world rushed to the UAE capital, bouncing between multiple conferences, exclusive beach parties, and luxury yacht gatherings. They swapped tips about private dinners with industry celebrities and chased down anyone who might have connections to the royal family.
Michael Saylor showed up at the Bitcoin MENA conference. He started Strategy, the biggest bitcoin-buying company, but its stock value has dropped by more than half since the middle of the year.
Saylor said he’d been traveling around the Gulf region, meeting with “hundreds of investors”, including sovereign wealth funds, to pitch his vision of buying more digital currency through various financial tools.
He showed slides that he claimed were shared with potential backers. They depicted Strategy as a rocket ship powered by bitcoin, aimed at a “$20 Trillion Idea.”
The head of Metaplanet announced plans to raise funds through a new investment program called “MARS.” Metaplanet is a Japanese hotel company that switched to hoarding bitcoin. Its stock has also crashed.
Other companies hunting for investment included Dominari Holdings, the investment bank favored by the Trump family, and the investment division of South Korean corporation Hanwha Group. Hanwha wants to make Abu Dhabi a regional center as it expands into cryptocurrency offerings.
UAE shows growing appetite for crypto
The UAE continues showing strong interest in crypto, though.
Binance, the planet’s biggest cryptocurrency exchange, announced last week it received complete authorization from Abu Dhabi’s financial regulator to run its worldwide trading system from the capital, as reported by Cryptopolitan. A government-backed UAE investment company purchased a $2 billion piece of Binance earlier in the year.
A division of Mubadala, the sovereign wealth fund, revealed in November it had tripled its bitcoin investment to a position valued at roughly $518 million. Separately, Mubadala reported another bitcoin investment through an exchange-traded fund worth $567 million during the same month. A Mubadala representative wouldn’t comment.
Abu Dhabi’s government is attracting cryptocurrency startups to establish offices in the city’s financial district. They’re offering early funding, complimentary office space, and additional benefits.
Conferences are split into two camps
Conference attendees split into two groups during the week. Die-hard believers attended the bitcoin conference with Saylor. His admirers followed him around, hoping for photographs, while his security team pleaded for space. Conference organizers gave Saylor a bright orange coat with the bitcoin logo sewn on the front pocket.
Changpeng Zhao walked on stage wearing orange sneakers printed with “Trump. Crypto President.”
Days before, Zhao and Binance leaders hosted visitors at Abu Dhabi’s Grand Prix on a three-deck yacht parked alongside numerous other massive boats. Hundreds celebrated late into the evening on decks equipped with disco balls, smoke machines, and laser lights.
Monday brought a dinner at the St. Regis hotel. Paul Manafort attended; Trump’s former campaign manager, and another pardon recipient. He told conference attendees he helped convince Trump about cryptocurrency’s value.
The second group gathered at the Abu Dhabi Finance Week conference downtown. Leaders from American crypto companies Coinbase and Circle mingled with Wall Street personalities. Ray Dalio and Blackstone head Steve Schwarzman were there, plus representatives from established banks UBS and HSBC.
Years of relationship-building required
Basil Al Askari co-founded Abu Dhabi crypto brokerage MidChains, backed by Mubadala. He noted many UAE newcomers hoped to secure quick agreements. Several people incorrectly assumed he represented major UAE investors simply because he’s Emirati and wore traditional clothing.
Apart from rare exceptions, he said it usually requires several years of building relationships and commitments to developing local operations before sovereign wealth funds or large family offices invest.
RockawayX called the UAE “the new Wall Street of digital finance” in a presentation, as mentioned in a Wall Street Journal report. The venture capital company manages about $1.8 billion. Days earlier, it revealed its 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 Bohbot, RockawayX’s chief growth officer. The firm had opened UAE headquarters and created a local program for cryptocurrency projects. “You must have some substantive skin in the game, and stay the course.”
