Big-spender conferences: the silver lining to Singapore’s strengthening crypto connections

EVENTS bookending the Singapore Grand Prix this month have put to rest any doubts that the country remains a leading global cryptocurrency hub.

The Monetary Authority of Singapore (MAS) has been vocal about its intentions to toughen restrictions on cryptocurrency operations in the country. Yet, the number of people who descended on Singapore to see and be seen at some hot-ticket crypto events would suggest that most industry participants still see Singapore as a crucial centre.

Take the Token2049 conference held 2 weeks ago at Marina Bay Sands (MBS), for example. Individual tickets ranged from US$499 for an early-bird pass to US$4,999 for an all-access pass. About 7,000 people attended the event – more than twice the estimated number based on past iterations, according to the event prospectus – which also drew some 2,000 exhibitor companies and 250 sponsors.

Whatever the implications of Singapore’s crypto hub status for retail investors, such a congregating of minds and of business interests is probably good for the national economy.

For a sense of the revenues, branding and networking opportunities generated: The event’s package for title sponsors was going at US$129,900. At US$39,900, sponsors could get their brand promoted at the closing party – hosted at Ce La Vi atop MBS. Sponsors who wanted a juice bar or a lollipop bar could fork out another US$29,900.

Exhibitors at the event who took a customisable 6-m by 3-m exhibition space would have shelled out about US$34,900, while the smaller turnkey 1.5-m by 1.5-m kiosk stands were going for US$9,900 each.

Even if all exhibitors had chosen the lower-tier option, that would have put S$19.8 million into the organiser’s bag.

A myriad of other crypto events were held outside the main conference: talks, networking sessions, parties at different venues and admission prices. A spreadsheet compiled by Token2049’s organisers listed 185 such fringe events throughout the week.

Someone who specialises in play-to-earn blockchain gaming told me she did not wish to pay for tickets for the actual conference, but flew into Singapore nonetheless because of the networking opportunities at fringe events. “It felt like we just had to be here,” she said.

There is a sense, also, that the crypto conference crowd is slightly different from the traditional Mice (meetings, incentives, conferences and exhibitions) crowd.

No doubt, many would have read of the purported S$53,000 bill racked up by American entrepreneur Rembrandt Flores in his time here. This included S$7,193 for his Token2049 VIP ticket, S$15,000 for a Paddock Club ticket at the F1 and S$16,380 for his hotel.

There is no definitive data to prove crypto bros are bigger spenders than the bankers, fund managers and entrepreneurs who usually populate the international conference circuits.

But anecdotal evidence does suggest those who made their millions in crypto are less afraid of conspicuous consumption than their counterparts who have endured the ridicule of the Occupy Wall Street movement post the global financial crisis.

Meanwhile, a report by analysts at investment bank Jefferies suggests crypto gains accounted for up to a quarter of growth in the US’ luxury market last year.

This year is the first year that Token2049 has been held in Singapore. Last year’s event was in London, and there were two pre-Covid iterations in Hong Kong. Industry watchers are now saying the Republic could again play host in the coming years.

There is some slight uneasiness over the regulator’s attentions. MAS’ chief fintech officer Sopnendu Mohanty had called out some exhibitors at Token2049 for not paying sufficient attention to what their banners and advertisements were conveying.

“I hope to see more serious token players, and less speculation,” Mohanty said at a panel on consumer protection, when asked about his expectations for next year’s conference.

The various businesses supporting the Mice sector, however, will be hoping for more crypto whales.