Although 2019 seems to be a promising year for the crypto market, as, an upsurge in the price of various cryptocurrencies have been recorded. Yet in the parallel world of crypto, eight ill-fated crypto exchanges have been shut down in the first half of the year.
ARKinvest’s crypto-analyst Yassine Elmandjra in his tweet stated that the life expectancy of a crypto exchange was about eighteen months only. These crypto exchanges usually fall victim to crypto hacking, poor management of data, and even digital currency theft.
8 exchanges have already been shut down this year.
Avg. lifetime of shut down exchanges is ~18 months.
~1.1 mil BTC have been lost/stolen from exchanges shutting down due to regulation, mismgmt, hacks, or being outright scams.
Tread cautiously. Not your keys, not your coins. pic.twitter.com/EMEcYqx8OM
— Yassine Elmandjra (@yassineARK) June 14, 2019
According to estimates, a total of fifty exchanges have been shut down up till now. As for the exchanges that have been shut down in the year 2019; include Coinroom, Coinpulse, Coinome, QudrigaCX, Coinest, Liquid Exchange, Gate coin and Cryptopia.
The major exchange Cryptopia was not able to recover from a hack and later on even after cutting losses could not maintain the business. While Coinpulse and Coinome fell victim of “less favorable conditions”. It tends to get difficult for the exchanges to protect funds and keep up with the regulations as well.
Lastly, whenever an exchange gets shut down, several questions arise regarding the cybersecurity condition and issues of these exchanges. Investors feel reluctant to invest their capital onto assets, which is under constant threat of cyber attacks.