PRESS RELEASE. November 2021, leading Crypto service comparison site – Cryptowisser, announces its annual Crypto exchange graveyard. The list serves as the only existing extensive database for “dead” cryptocurrency exchanges. Over the last year many exchanges have been victim to regulatory regulations, hacking, and a highly competitive growing market. Six exchanges from the detailed report were even closed down due to the actual exchange being a scam.
It was another rough year for crypto exchanges as nearly 80 exchanges bit the dust, but why are more and more exchanges dying despite the booming crypto market and continued acceptance into mainstream economics?
The Regulatory Kiss of Death
As the market grows and crypto becomes more widely accepted, nations and governments are forced to bend the knee to find ways of accepting cryptocurrency and with that comes regulations. Whether the said government enforces stricter regulations or bans crypto altogether, there are several potential factors that can affect exchanges with markets in those countries. For example, with the recent crypto ban in China, major exchanges like Bit-Z fell by the wayside.
The Hacking Death Penalty
Although one of the smallest death contributors on the list, hacking should not be ignored. There were reportedly 3 reported fatal hacks last year. The Atomars exchange, a promising exchange from the Seychelles that was known for their security was the victim of an inside job resulting in a hacking, and has since not been able to bounce back since.
The Powerhouse Grim Reaper
Despite the growing number of crypto users, smaller exchanges have a hard time competing with the giants such as Binance and KuCoin. These crypto household names continue to swallow most of the market share of new
