The cryptocurrency markets remain in bearish territory for 12 months straight in 2022. The markets traded on the back foot since the start of the year, showcasing little to no price breakouts. Bitcoin was trading at $35,000 in January this year but plummeted to $17,000 levels in December, dropping a massive 50%. The biggest losers in the ongoing and harsh bearish conditions are the crypto exchanges as users’ transactions decline sharply.
Investors are moving away from the markets, fearing another round of crashes that could wipe out their savings. Most crypto exchanges generated meager revenues this year that eventually forced them to cut down on staff to remain afloat. While a handful of crypto trading platforms fired employees, the others closed down and shut operations after facing massive losses.
Also Read: Shiba Inu: Investment of $670 Turns to $1.7 Million In 1 Year
Up until July 2022, 25 cryptocurrency exchanges around the globe shut operations due to the TerraUST and LUNA crashes. You can read more details about it here. The losses mounted with lesser user transactions making them unable to operate beyond the point of closure.
According to data published by Cryptowisser, a leading crypto service comparison website, 51 cryptocurrency trading platforms closed down in 2022 after facing losses.
Also Read: FTX Token Drops 99% From ATH After Sam Bankman-Fried’s Arrest
Cryptowisser revealed that the majority of exchanges closed due to mounting losses, while a small percentage shut down due to scams, rebranding, and regulatory deaths.
The biggest event that shook the crypto industry in 2022 is the fall of the FTX exchange. FTX wasn’t any other exchange and was trusted by a large section of investors as a reliable trading platform.
Also Read: 3 Cryptos That Lost Their ‘Hype’ in 2022
The collapse and bankruptcy of FTX caused investors to distrust centralized exchanges citing that their holdings aren’t in safe hands.
The phrase ‘not your keys, not your cryptos’ gained steam after the fall leading to an exodus from exchanges to decentralized wallets. Reports of an upcoming recession in 2023 are looming and if the markets fall, many exchanges could bite the dust.
Disclaimer: Our articles are NOT financial advice, we are not financial advisors. All investments are your own decisions. Please conduct your own research and seek advice from a licensed financial advisor.
Post expires at 6:44pm on Wednesday March 15th, 2023