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Cryptowisser: 51 crypto exchanges died in 2022
press release
PRESS RELEASE. Cryptowisser, a leading crypto services comparison site, announces the launch of its annual Crypto exchange graveyard for 2022. This list is the only comprehensive database of “dead” cryptocurrency exchanges currently available.
In 2022, 51 exchanges were reported dead, with the vast majority apparently dying out for business reasons, and there were small percentages of fraud, rebranding, and regulatory deaths.
FTX – Star of the Show
Of all the stock market crashes in 2022, FTX received the most attention, namely due to its large size and perceived strength (previously the third largest exchange by trading volume). Unlike most crypto exchange deaths, this event shook the crypto community to its core, while the majority of crypto exchange deaths occur in smaller, lesser known exchanges.
Hacking and fraud on the way down
During the crypto winter, fewer and fewer new crypto platforms were able to set up shop, resulting in only the strongest crypto platforms living to tell the tale. Less than 3% of crypto exchange deaths were caused by hacking or fraud, the most notable being the Hoo exchange, which was reported to have frozen withdrawals, before disappearing, leaving behind an angry alliance of former Hoo traders. Cryptowisser also saw a significant decrease in the number of new exchanges registered.
Major exchanges continue to gain market share
Although the market has declined, household names have held onto their market shares, making it difficult for smaller exchanges to establish themselves. The FTX debacle drew even more attention to trust issues in the crypto market, making people less likely to choose a lesser-known exchange. Not only that, major exchanges like Bitget have started advertising their “protection funds” to reassure traders that their money is safe with them.
Majority of dead exchanges reported to be “missing in action”
Over 50% of exchange deaths in 2022 were reported “MIA”. Just vanished into the ether, occasionally leaving traces of their demise in a trail of confusing tweets, trading volume crashes, homepage 404s, and dubious site redirects. A clear indication that the crypto winter is weeding out the weak, but still worrying for affected traders.
Centralized exchanges are losing favor with the masses
In the centralized exchange world, FTX demonstrated how quickly things can change. Over the following weeks, traders began withdrawing large amounts of BTC from exchanges and placing them in cold storage. In addition, a number of new investors are attracted to decentralized cryptocurrency exchanges because they are able to maintain greater control over their funds.
Concluding remarks
Although the deaths of exchanges were lower than in previous years, FTX has had a greater impact on the market than the hundreds of dead exchanges in previous years. The larger exchanges such as Binance continue to cement their market share. Until the market recovers, exchanges will continue to die, especially if they cannot rebuild confidence in their traders.
Cryptowisser is a cryptocurrency service comparison site that provides the largest, most frequently updated and most trusted list of cryptocurrency exchanges, wallets, debit cards and merchants anywhere. The platform provides more than 1,000 reviews of the various exchanges, debit cards, wallets and merchants in the crypto space, designed to help make the most informed purchase and service decisions.
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