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Forecast bleak as more Crypto exchanges windup operations

Forecast bleak as more Crypto exchanges windup operations

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.

 

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.

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

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