We are just entering the fourth quarter of the year and so far more than 75 cryptomeda exchanges worldwide have closed
The rate at which cryptomeda exchanges are falling off the market is significantly higher this year. More than 75 cryptomoeda exchanges worldwide have already been closed. Some have stopped operations because of hacks and blows, while others have simply left the grid for unknown reasons.
A report from Crypto Wisser Exchange Graveyard shows that four exchanges, including Italy’s Altsbit, have closed after suffering heavy losses from hacks. Five more were forced to close after being identified as hacks and 31 crypto exchanges ceased their operations voluntarily.
The remainder were categorised as AMI, as they closed Bitcoin Billionaire and disappeared without divulging any formal reasons. Those who were forced to close their operations by the government this year are NLexch and Chilebit, which are based in the Netherlands and Chile respectively. Experts in the crypto sector associate the closure of small exchanges with the popularity of decentralized exchanges (DEX) and the growing DeFi space.
The implementation of strict regulatory guidelines has also been cited as a reason for closing exchanges that could no longer keep up. The futures of BitMEX and Kucoin are apparently at stake at the moment. The former is having a disagreement with the law after US prosecutors accused some of their executives.
There are also concerns about the viability of the exchange after CoinMetrics reported that more than $500 million Bitcoins were withdrawn within four days between September 30 and October 3. KuCoin, on the other hand, suffered losses of more than $200 million due to the hacks, although the company is said to have recovered.