Topic: 75 Crypto Exchanges have shut down since this year started and hasn't even ended - page 3. (Read 768 times)
October 08, 2020, 11:23:57 AM
This is a staggering number, and this is what we know about it. There may be some smaller exchanges which was known to very less people and thousand also be shut. Some of the exchanges may be shut because of the government or the country polices as they keep changing and making it more cumbersome for this exchange to operate. Some of them may not have a good volume to operate etc.
October 08, 2020, 10:00:13 AM
The Major reasons for the shut-downs have been blamed on;
1. Scams
2. The growing regulatory pressure, so other exchanges just decided to shut down voluntarily
3. Exchange hacks
4. The resurrection of decentralized exchanges this year due to the DeFi hype
1. Scams
2. The growing regulatory pressure, so other exchanges just decided to shut down voluntarily
3. Exchange hacks
4. The resurrection of decentralized exchanges this year due to the DeFi hype
Adding up:
5. There are lots of exchange or this industry is already a saturated one.
So it isnt a surprise why majority of them just disappear without any explanation and half do voluntarily closed their doors.
They wont really get sufficient liquidity for them to continue and basing off numbers then majority of us would only just recommend nor prefer on top exchangers
which had been commonly suggested.In result, those new exchange wont really get users and its just dumb to continue into that manner.
October 08, 2020, 09:32:59 AM
It is not a big problem that some crypto exchange has stopped working - and even that number is 10 times higher - but the problem is that in some cases the owners disappear with user funds, and investigations of such crimes are very often not conducted in some countries.
This is where the intersection between decentralization and regulation comes in, as most of us are against governments interfering in our crypto anonymity, and on the other hand we want protection in the event of a hack crypto exchange or if the owner suddenly dies and takes all private keys with him to the grave. Therefore, it is important to tighten the permissions for such services - because otherwise many people will lose confidence in investing in crypto - which of course does not mean that they should use crypto exchange for long-term storage, but we all know that the vast majority have just such habits.
I think we should always remind ourselves what happened to Mt.Gox or Quadriga, and many other crypto exchanges that have marked the destinies of many people in the past decade.
This is where the intersection between decentralization and regulation comes in, as most of us are against governments interfering in our crypto anonymity, and on the other hand we want protection in the event of a hack crypto exchange or if the owner suddenly dies and takes all private keys with him to the grave. Therefore, it is important to tighten the permissions for such services - because otherwise many people will lose confidence in investing in crypto - which of course does not mean that they should use crypto exchange for long-term storage, but we all know that the vast majority have just such habits.
I think we should always remind ourselves what happened to Mt.Gox or Quadriga, and many other crypto exchanges that have marked the destinies of many people in the past decade.
October 08, 2020, 07:59:15 AM
Well, this should be expected. With how "small" crypto market compared to stocks and etc, there is no way all of those exchanges will get enough volume to survive. Not to mention some are built with the intention to exit scam. If there's no new features that you need, better stick with exchanges that are considered "safe to use" in most cases. Don't try new exchange because you want to cash out some shitcoins.
Not only that, some of those exchange was created because cryptocurrency hype was high or cryptocurrency price rising a lot.
October 08, 2020, 05:54:19 AM
Well, this should be expected. With how "small" crypto market compared to stocks and etc, there is no way all of those exchanges will get enough volume to survive. Not to mention some are built with the intention to exit scam. If there's no new features that you need, better stick with exchanges that are considered "safe to use" in most cases. Don't try new exchange because you want to cash out some shitcoins.
October 07, 2020, 08:30:44 AM
This is why you don't blindly trust an exchange no matter how good the promotions are or no matter if it is promoted by some 'influencer'. Also, you don't leave substantial amounts in your exchange account, even just for a day, if you intend to continue on trading. Better to pay those small fees for transfer rather than regret it later since you have been hacked for the whole amount of your bank roll.
With the way things are going currently, even the reputable exchanges are getting closed here and there. Point still stands years after it was made: never leave your money ever on any exchange.
With the way things are going currently, even the reputable exchanges are getting closed here and there. Point still stands years after it was made: never leave your money ever on any exchange.
October 07, 2020, 08:01:24 AM
I think the main reason for shutting down these exchanges is decentralized finance, of course, there are some exchanges whose purpose was just to scam, although whatever it may be an attempt to save the traditional banks.
Honestly, this has happened to me. Just a few days ago, when the Kucoin exchange was hacked, I had some funds that I wanted to withdraw, But then I thought that even if I have to trade here tomorrow, I will withdraw it tomorrow. And so far, withdraw option is suspended by kucoin team. my fund is stuck now.
Quote
In the light of this, I would like to echo that it's everyone's responsibility to make sure you never use an exchange as a wallet for holding their bitcoins or other coins. Chances are high that you will wake up tomorrow and the custodian of your funds is no longer operating. It doesn't matter how big or popular the exchange is. Anything can happen.
Honestly, this has happened to me. Just a few days ago, when the Kucoin exchange was hacked, I had some funds that I wanted to withdraw, But then I thought that even if I have to trade here tomorrow, I will withdraw it tomorrow. And so far, withdraw option is suspended by kucoin team. my fund is stuck now.
And considering that Kucoin is already big and known exchange, how much more risk when it comes to those small crypto exchanges? If you will leave some funds for short period, just make sure that the exchange has insurance at least, like in BNB and coinbase. Otherwise, secure your funds in your own wallets. It will not hurt if you know for sure that your funds are in your possession, at least you can sleep at night without worrying the next day that your funds may be on the hands of hackers.
October 07, 2020, 07:49:44 AM
I think the main reason for shutting down these exchanges is decentralized finance, of course, there are some exchanges whose purpose was just to scam, although whatever it may be an attempt to save the traditional banks.
Honestly, this has happened to me. Just a few days ago, when the Kucoin exchange was hacked, I had some funds that I wanted to withdraw, But then I thought that even if I have to trade here tomorrow, I will withdraw it tomorrow. And so far, withdraw option is suspended by kucoin team. my fund is stuck now.
Quote
In the light of this, I would like to echo that it's everyone's responsibility to make sure you never use an exchange as a wallet for holding their bitcoins or other coins. Chances are high that you will wake up tomorrow and the custodian of your funds is no longer operating. It doesn't matter how big or popular the exchange is. Anything can happen.
Honestly, this has happened to me. Just a few days ago, when the Kucoin exchange was hacked, I had some funds that I wanted to withdraw, But then I thought that even if I have to trade here tomorrow, I will withdraw it tomorrow. And so far, withdraw option is suspended by kucoin team. my fund is stuck now.
October 07, 2020, 06:52:33 AM
Thinking about leaving those hard-earned BTCitcoins of yours in an exchange wallet as way of;
- Storing or Holding them in there?
- Staking and Lending them out through the exchange?
Well, think again. According to Cryptowisser Exchange Graveyard, in this year alone 75 cryptocurrency exchanges have been shutdown and the year is yet to end. Who knows how many more will shut down. As of today, that's One exchange getting closed down every 3.75 Days on average.
Cointeleghaph cites that;
The Major reasons for the shut-downs have been blamed on;
1. Scams
2. The growing regulatory pressure, so other exchanges just decided to shut down voluntarily
3. Exchange hacks
4. The resurrection of decentralized exchanges this year due to the DeFi hype
In the light of this, I would like to echo that it's everyone's responsibility to make sure you never use an exchange as a wallet for holding their bitcoins or other coins. Chances are high that you will wake up tomorrow and the custodian of your funds is no longer operating. It doesn't matter how big or popular the exchange is. Anything can happen.
Use Noncustodial or better still, Hardware wallets to hold your funds
Source links for those who would love to read further:
- https://cointelegraph.com/news/75-crypto-exchanges-have-closed-down-so-far-in-2020
- https://www.cryptowisser.com/exchange-graveyard/
- Storing or Holding them in there?
- Staking and Lending them out through the exchange?
Well, think again. According to Cryptowisser Exchange Graveyard, in this year alone 75 cryptocurrency exchanges have been shutdown and the year is yet to end. Who knows how many more will shut down. As of today, that's One exchange getting closed down every 3.75 Days on average.
Cointeleghaph cites that;
- Five of the exchanges were labelled as scams while four including Altsbit, and Nerae, were flagged as being hacked.
- In total 31 were shut down voluntarily while 34 just disappeared with no explanation
- Dutch exchange NLexch, and Chilean Chilebit were the only two flagged as being shut down by their respective governments in 2020
The Major reasons for the shut-downs have been blamed on;
1. Scams
2. The growing regulatory pressure, so other exchanges just decided to shut down voluntarily
3. Exchange hacks
4. The resurrection of decentralized exchanges this year due to the DeFi hype
In the light of this, I would like to echo that it's everyone's responsibility to make sure you never use an exchange as a wallet for holding their bitcoins or other coins. Chances are high that you will wake up tomorrow and the custodian of your funds is no longer operating. It doesn't matter how big or popular the exchange is. Anything can happen.
Use Noncustodial or better still, Hardware wallets to hold your funds
Source links for those who would love to read further:
- https://cointelegraph.com/news/75-crypto-exchanges-have-closed-down-so-far-in-2020
- https://www.cryptowisser.com/exchange-graveyard/
Jump to: