PRICE RELEASE November 2021, leading Crypto service comparison site – Cryptowisser, announces its annual Crypto exchange graveyard. The list serves as the only existing extensive database for “dead” cryptocurrency exchanges. In the year since its creation, many cryptocurrency exchanges have fallen prey to regulations and hacking. Six of the exchanges included in this detailed report had to be closed because the exchange was a fraud.
Another rough year was had by crypto exchanges. Nearly 80 of them were shut down. But why is it that more exchanges are dying, despite the growing crypto market and acceptance in mainstream economics.
The Regulatory Kiss of Death
With crypto becoming more popular, governments and nations are being forced to accept cryptocurrency. It doesn’t matter if the government bans cryptocurrency or enforces tighter regulations, these factors can have an impact on exchanges that take place with countries in those markets. With the Chinese crypto ban, Bit-Z, a major cryptocurrency exchange, was shut down.
Hacking Death Penalty
Hacking, although it is not the leading cause of death on the list should not be overlooked. Last year, there were 3 fatal hacks. Atomars, an exchange in the Seychelles, was hacked and was a promising one.
The Powerhouse Grim Reaper
Even though there is a growing population of cryptocurrency users, small exchanges are having trouble competing with giants like Binance or KuCoin. It is very hard for smaller exchanges not to get swallowed by crypto-giants like Binance and KuCoin. Just looking at these Giant’s native coins, it is evident they are experiencing massive growth and taking market share. Binance’s native token (BNB) was worth 27 USD a year ago, and is currently valued at 628 USD. KuCoin’s native token, KuCoin token was worth only 85 cents one year ago. It is now worth 21 USD.
The Defi Death Experience
Decentralized exchanges have been pushing out centralized exchanges for quite some time They often have lower fees, fewer KYC requirements and higher security and that makes it an attractive choice from many traders, when looking at big DeFi exchanges like Uniswap, they show huge signs of growth – Just a year ago their token market cap was almost 900 million USD, and today stands at a staggering 15 billion USD.
Although exchange deaths continue to rise year-on-year, more regulations and awareness of crypto worldwide could mean that there is a possibility for the regulation to stabilize the crypto market. It has been a long time since the Bull-run started and the first exchange was opened. A new exchange must comply with all regulations and have the ability to pay all costs. They also need to be competitive with big-name exchanges that offer security, trust and reasonable fees.
Cryptowisser is a cryptocurrency services comparison site with the world’s largest, most frequently updated and most trusted lists of cryptocurrency exchanges, wallets, debit cards and merchants. You can find all the information you need to make informed purchasing and service decisions about the cryptocurrency world, including reviews for more than 1000 exchanges.
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