Recently, coinjournal.net published a report showing the number of failed cryptocurrency exchanges over the past eight years. Interestingly, the researcher’s data shows that 42% of failed crypto-asset trading platforms disappeared without a trace, giving users no explanation as to why the exchange was shut down.
Over the past eight years, research has shown that only 22% of failed crypto exchanges are left due to actual business-related reasons
- A report covering failed cryptocurrency exchanges notes that 42% of all exchanges that have failed since 2014 have not provided reasons as to why businesses falter and exchanges essentially disappear from the industry without warning.
- 22% of failed cryptocurrency exchanges over the past eight years remain due to actual business reasons, according to coinjournal.net research. 9% of trading platforms turned out to be outright scams and fraudulent acts from the start.
- The coinjournal.net report states that, “After 23 exchanges were made in 2018, this number rose 252% in 2019, before rising by another 17% in 2020.” Staying at the same level in 2021, this year’s improvement finally occurred, with a 55% reduction in failures if the rest of the year is beyond the first six months.”
- In a comment sent to Bitcoin.com News, Dan Ashmore, CFA Data and Crypto Analyst at coinjournal.net, explained that such metrics should be cleaned up. Ashmore noted that “if cryptocurrency is taken seriously and fully proves itself, it needs to continue to clean up its image and leave compelling statistics like this behind.”
- Moreover, the report notes that while 2022 is not over yet, the year is expected to see a 55% drop in total crypto exchange failures. “In terms of the amount that simply vanishes into thin air, one can expect this to drop — regulation is still far behind, but at least it has made progress and should make it more difficult for exchanges to disappear without a trace,” the magazine. Adds net report.
- The report comes at a time when countless crypto companies are suffering financially from the crypto winter. Layoffs have spread across the crypto industry over the past few months as thousands of crypto employees have been laid off.
- Moreover, three major bankruptcies have prompted Celsius, Three Arrows Capital (3AC), and Voyager Digital to file for bankruptcy protection. At least half a dozen cryptocurrency exchanges have frozen withdrawals.
- Last Wednesday, the Zipmex trading platform Paused withdrawals She suffers from “financial difficulties [from] of our major trading partners” due to the downturn in the cryptocurrency market.
- After the pause, the Thai Securities and Exchange Commission (SEC) asked Zipmex why it had paused withdrawals in message Posted on Wednesday.
What do you think of the research report published by coinjournal.net? Tell us what you think about it in the comments section below.
photo credits: Shutterstock, Pixabay, Wiki Commons, coinjournal.net
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