Crypto Hubs 2023 shares an interesting perspective on location decisions for crypto startups, examining geographical elements that notably influence both operational success and work-life balance, drawn largely from the experiences of Mitchell Amador, CEO and founder of Immunefi.
Immunefi runs on a remote operation with team members spanning across continents – America, Central America, South America, Central Europe, and a significant British team. While it is incorporated in Singapore, the organization has a conspicuous presence in Portugal which Amador refers to as a hub.
Portugal evidently stands out for Amador not just because of the wide diversity in the pool of crypto enthusiasts in the country but because of the more calming pace of life, where despite the frenzy that is characteristic of the fastest market in the history of man, one can still wind down at a beach. This contrast of a fast-paced industry within a laid-back city environment seems to be a major attraction for founders.
However, this choice of location does not come without its challenges. Portugal’s restrictive business environment with stringent regulation, taxation, and complex employment rules make it a far from ideal location for incorporating a business. This is where Singapore plays a pivotal role as Amador points out, “What you need to do in the early stages is just get out the door. Focus on getting customers and figure out if what will happen is real. And once you have that, then minimize future consequences. So everybody picks the Delaware option. Singapore is like the Delaware of Southeast Asia.”
On the other hand, Singapore is not without its disadvantages. For instance, while it boasts of a solid business infrastructure and is the second-highest ranking crypto hub according to CoinDesk, it is seemingly more transactional and maintains a wary approach to the level of experimentation in crypto. This causes a chilling effect on banking services, creating a level of uncertain hesitation in investment.
Overall, the experience of a Canadian-born entrepreneur falls into familiar patterns in the crypto space: leveraging the best of multiple worlds to ensure strategic growth in a highly dynamic industry. While Portugal provided an excellent hub for part of the operations, the structural advantage of Singaporean incorporation was used. Although it’s evident that the path for early-stage companies in the crypto domain is quite rocky, the shared experiences show that the right mix of strategy and adaptability can indeed help in charting those waters.
Source: Coindesk
