Strategic Shift in the Center of Cryptocurrency Influence

As around 15,000 participants filled the TOKEN2049 conference in sweltering Dubai, doubts are growing back home about whether President Donald Trump is actually delivering on his promises to support the cryptocurrency sector. Bitcoin has already fallen 12% from its post-election high, while slowed deregulation and trade war fears are undermining investor confidence. Meanwhile, Dubai is strengthening its position as a global hub for the crypto industry, as evidenced by significant investments such as the $2 billion injection from Abu Dhabi-backed fund MGX into Binance. This contrast reflects a broader shift in the global cryptocurrency landscape, where US leadership is weakening while new centers of influence gain strength.

Cooling Crypto Euphoria Against the Reality of Trump’s Policies

Donald Trump’s arrival at the White House was accompanied by bold promises aimed at supporting the cryptocurrency sector—a stark contrast to his previous critical stance on digital assets. These promises, along with the launch of his own cryptocurrency, initially sparked a surge of optimism in the market, reflected in record Bitcoin prices after the election.

However, reality has proven more complex. Since the beginning of the year, Bitcoin has lost about 12% of its value, which is attributed to the slow implementation of promised regulatory relief and growing concerns about the negative consequences of new tariff wars for the global economy.

“In the long term, it’s going to be good for crypto, but it really relies on the world economy picking up again,” noted Miklos Veszpremi, chief operating officer of a Web3-based streaming platform. “I think that once the tariffs actually start hitting countries, there’s going to be a lot of pain, and we might be headed towards some difficult times.”

This cautious assessment reflects growing skepticism among industry participants regarding the speed and scale of promised regulatory relief. Although some progress is observed, the pace of change does not match the high expectations formed during the election campaign.

“We’re seeing a classic example of the disconnect between political promises and their implementation,” comments Alexei Fedorov, founder of a cryptocurrency investment consulting firm. “The inertia of the regulatory system and the complexity of issues related to crypto regulation inevitably slow down the reform process, leading to an adjustment in market expectations.”

Investments Continue to Grow Despite Mixed Sentiments

Despite the cooling of initial enthusiasm, investment activity in the crypto sector remains high. In the first quarter of 2025, venture investments in cryptocurrency companies amounted to $5.4 billion, representing the largest quarterly inflow since mid-2022. This statistic indicates that investors’ long-term confidence persists despite current volatility and market uncertainty.

“We’re observing an interesting division between short-term market sentiment and long-term investment trends,” notes Maria Kovaleva, a cryptocurrency market analyst at an international investment firm. “Institutional investors are looking far beyond the horizon of current market fluctuations, focusing on the fundamental potential of blockchain technologies and digital assets.”

Representatives from financial giants such as BlackRock and Goldman Sachs were present at the TOKEN2049 conference, indicating growing interest from traditional financial institutions. Even Eric Trump, the president’s son, was included in the event program, scheduled to speak on Thursday.

“The participation of major financial institutions is one of the most indicative markers of industry maturity,” believes Dmitry Karpov, a partner at a venture fund specializing in blockchain startups. “Despite regulatory uncertainty, we see BlackRock and Goldman Sachs actively exploring opportunities in this sector, which speaks to the gradual normalization of crypto asset perception in the financial mainstream.”

Dubai Strengthens Its Position as a Global Crypto Hub

While confidence in Trump’s crypto policy is waning, Dubai is strengthening its position as a key center of the global crypto industry. The United Arab Emirates has transformed into a genuine base for cryptocurrency companies, many of which are either relocating or expanding their presence in the region.

A significant confirmation of this trend was the March announcement that MGX, a fund backed by Abu Dhabi, invested $2 billion in the cryptocurrency exchange Binance. This occurred despite the recent legal troubles of Binance founder Changpeng Zhao, who served a four-month prison term after pleading guilty to violating US anti-money laundering laws.

“MGX’s investment in Binance demonstrates the UAE’s strategic approach to developing the crypto market,” explains Elena Sokolova, a professor of international finance. “Unlike many other jurisdictions that either completely block or reluctantly accept cryptocurrencies, the UAE is actively striving to become a global hub, attracting key industry players through a combination of favorable regulation and strategic investments.”

UAE regulators are not only maintaining support for the crypto sector but actively expanding its integration into the broader economy:

• Buyers of apartments in a new tower project launched in Dubai this week—one tied to the Trump Organization and a luxury developer—can pay in Bitcoin, as confirmed by Eric Trump.
• Emirates NBD, a major bank in Dubai, has launched cryptocurrency trading on its digital platform, Liv.
• At the DMCC, a major free zone with more than 600 crypto firms, plans are underway to launch a full “crypto tower” by early 2027, which will host even more companies.

“Dubai is creating a unique ecosystem where traditional finance, real estate, and crypto assets are integrated into a single whole,” notes Mikhail Stepanov, a consultant on blockchain integration in financial institutions. “This comprehensive approach contrasts with the fragmented regulation in most other jurisdictions and creates significant competitive advantages for the UAE as a cryptocurrency hub.”

Shift in Global Influence: From the US to New Centers

The contrast between weakening crypto enthusiasm in the US and growing activity in Dubai reflects a broader shift in the global cryptocurrency landscape. Although the US remains the largest market by trading volume and investment, its leadership in shaping the industry’s future is no longer unequivocal.

“We’re witnessing the globalization of the cryptocurrency ecosystem, where decisions made in Dubai, Singapore, or Hong Kong have an increasing influence on industry development,” believes Alexander Petrov, director of the Institute of Digital Economy. “The US risks losing its role as the chief architect of the crypto-financial system if it continues to balance between half-measures and uncertainty.”

For many TOKEN2049 conference attendees, Dubai makes perfect sense thanks to its more flexible approach compared to Washington’s endless regulatory roadblocks. This trend could have long-term implications for the future formation of global standards in the crypto industry.

“Centers of influence in the emerging digital economy will be determined not so much by historical financial power as by the flexibility of regulatory approaches and the ability to adapt to technological innovations,” asserts Vladimir Smirnov, a researcher of geoeconomic transformations. “In this context, Dubai’s aggressive strategy could yield significant dividends in the long term.”

Outlook: Between Optimism and Pragmatism

The mood at the TOKEN2049 conference reflects the broader state of the crypto industry at this stage—between optimism about long-term potential and pragmatism in assessing short-term challenges. Although the initial euphoria about the “pro-crypto” Trump administration is fading, the fundamental drivers of industry development remain in force.

“We’re at a stage where the market is reassessing the speed and scale of change,” explains Boris Kovalchuk, an investment strategist at a specialized crypto fund. “This is a natural process of expectation correction, which does not negate the long-term trend toward integrating cryptocurrencies into the global financial system.”

For industry participants, the key factor becomes the ability to adapt to the changing landscape and diversify their strategies in accordance with new realities. Excessive concentration on the policy of one country, even one as influential as the US, no longer seems an optimal strategy.

“The successful players in the crypto space will be those who can effectively operate in a global context, taking advantage of different jurisdictions,” concludes Irina Volkova, head of regulatory strategy at a major cryptocurrency exchange. “We’re seeing a transition from a model of single-center dominance to a multipolar system, where several regional hubs with different regulatory approaches coexist.”

The TOKEN2049 conference in Dubai, with its chaotic energy, diverse composition of participants, and the mixing of crypto enthusiasts with representatives of traditional finance, perhaps most accurately reflects the current state of the industry—dynamic, contradictory, but invariably moving forward, regardless of regulatory obstacles and market fluctuations.