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Almost 80 Crypto Exchanges Died This Year Alone

Cryptowisser announces the annual Crypto exchange graveyard. This list is the only database that contains all “dead” cryptocurrency exchanges. Many exchanges have fallen prey to hacking and regulations over the past year. This is despite a growing market that is highly competitive. Six of the six exchanges in the detailed report were closed due to fraud.

Another rough year for crypto exchanges saw nearly 80 of them go under. But why is it that more exchanges are dying despite the booming cryptocurrency market and acceptance into mainstream economics.

Regulation Kills

As crypto grows in popularity, governments and nations are forced to accept cryptocurrency. There are many factors that could affect the exchanges between countries, including whether the government enforces stricter regulations and bans crypto entirely. Major exchanges such as Bit-Z were affected by the recent Chinese crypto ban.

Hacking Away

Hacking is one of the most important death contributors to the list. Last year, there were 3 fatal hacks. The hacking of the Atomars exchange, a promising exchange in the Seychelles, resulted in the loss of security and the exchange has not been able recover since.

Bigger is Better

Despite growing numbers of crypto users, smaller exchanges are having trouble competing with giants like Binance and KuCoin. These crypto giants continue to dominate the market share and trade volume of new users, making it difficult for smaller exchanges. It is clear that these Giant’s native currencies are seeing huge growth and taking market share. Binance’s native token (BNB), was valued at 27 USD one year ago and is now worth 628 USD. KuCoin saw even greater growth, with the KuCoin native token (BNB) being valued at just 85 cents a Year ago and now worth more than 21 USD.

Defi Up Hill Battle

Decentralized exchanges are pushing centralized exchanges for a while. They have lower fees and fewer KYC requirements, which makes them attractive to traders. However, when you look at large DeFi exchanges such as Uniswap, there is huge growth. Their token market cap was just 900 million USD a year ago and now it stands at a stunning 15 billion USD.

In the end

Although exchange deaths continue to rise year-on-year, more regulatory sanctions and increased crypto awareness around the world could mean that there is a possibility that regulations could help stabilize the market. The days of opening a Bull-run exchange hoping for the best are long gone. A new exchange must comply with all regulatory requirements and be able cover all costs. They also need to have the ability to compete not only with big names that offer security, trust and acceptable fees but also with decentralized exchanges that are constantly grabbing market share.

Cryptowisser is a comparison website for cryptocurrency services. It has the largest, most up-to-date and most trusted list of cryptocurrency exchanges and wallets. They have over 1,000 reviews on the different exchanges, wallets, wallets, and merchants to help you make the right buying decisions and service selections in the crypto world.

 

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