More recently, coinjournal.net published a report showing the number of cryptocurrency exchanges that have failed 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 closed.
Research shows that over the past 8 years, only 22% of failed crypto exchanges have ceased to exist for real business reasons.
- A report on failed digital currency exchanges indicates that 42% of all exchanges that have failed since 2014 did not provide a reason why business faltered, with trading platforms virtually disappearing from the industry without much notice.
- According to a study by coinjournal.net, 22% of failed crypto exchanges over the past eight years have left for real business reasons. 9% of trading platforms from the very beginning turned out to be outright fraud and fraudulent business.
- “After closing 23 exchanges in 2018, that number grew by 252% in 2019 and then increased by another 17% in 2020,” coinjournal.net explained in the report. “Staying at the same level in 2021, this year has finally seen an improvement, with a 55% drop in abandonment if the rest of the year follows the first six months.”
- In a comment posted to Bitcoin.com news, Dan Ashmore, a CFA and cryptocurrency data analyst at coinjournal.net, explained that metrics like this should be cleaned up. “If cryptocurrency is to be taken seriously and fully proven, it needs to keep cleaning up its image and leaving such killer statistics behind,” Ashmore remarked.
- In addition, the report notes that while 2022 is not over yet, the total number of crypto exchange crashes is expected to drop by 55% this year. “As for the amount that just disappears into thin air, you can expect it to decrease – regulation is still far behind, but it has at least made progress and should make it harder for exchanges to disappear without a trace,” writes coinjournal. clean report adds.
- The report comes at a time when a host of crypto companies have been financially impacted by the crypto winter. Layoffs have been spreading across the crypto industry over the past few months as thousands of crypto employees have been laid off.
- In addition, three major bankruptcies forced Celsius, Three Arrows Capital (3AC) and Voyager Digital to file for bankruptcy protection. At least half a dozen digital currency platforms have frozen withdrawals.
- Last Wednesday, the Zipmex marketplace withdrawals suspended and said he was suffering from “financial difficulties [from] our key business partners” caused by the downturn in the crypto market.
- Following the suspension, the Thai Securities and Exchange Commission (SEC) asked Zipmex why it suspended withdrawals in letter posted on Wednesday.
What do you think of the research report published by coinjournal.net? Let us know what you think about it in the comments section below.
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Credit : news.bitcoin.com