Cryptocurrency market has seen a lot of ups and downs in its persuasion to dominate the financial sector, across the globe. Cryptocurrency exchanges generally deal with the volatile nature of cryptocurrencies which should be the reason for the exchange’s insolvency. But there is a decline in the number of cryptocurrency exchanges for the past eight years and surprisingly there is no particular reason, that influenced such companies to dissolve themselves. These companies just disappeared in thin air and left the investors in shock.
According to a study done on cryptocurrency exchange, around 42% of crypto exchanges have become insolvent and have quit the market in the past eight years. The reasons for the failure of businesses were not known in the study and the industries basically vanished.
Exchanges that actually quit due to viable reasons!
Credits: CNBC TV18
According to the study, around 22% of the cryptocurrency exchanges had viable reasons for leaving the cryptocurrency industry. The main reason for them leaving the industry was directly linked to the failure of business operations, turning them insolvent. The study also showed that around 9% of the crypto exchanges were running fraudulent activities and were scamming investors from the outset.
The voice of crypto experts on the exchanges quitting the crypto world.
According to many experts, the quitting of cryptocurrency exchanges over the last 8 years has been a cause of concern. If cryptocurrency has to achieve its vision of dominating the world’s finance sector, then all these unwanted activities have to be cleaned up from the domain.
A CFA and cryptocurrency data analyst at coinjournal.net told that, “Cryptocurrency must continue to improve its reputation and put these devastating numbers behind it if it wants to be taken seriously and fully establish itself.”
Insights on the crypto exchanges till the first half of 2022.
According to the reports, it is believed that there will be a fall in the failure of cryptocurrency exchanges by 55%. Though the market was hit by a catastrophic collapse, the exchanges will hold up tight and will see through the avalanche, added the report.
The improvement in crypto regulation has been tipped as the main reason for the increased chance of witnessing less failures this time around. The belief is that the regulatory bodies won’t let the cryptocurrency exchanges to disappear in thin air without giving any kind of viable reasons. So, though the condition of the market looks stiff, only insolvency posses the threat for the companies to quit the crypto industry.
