Survey reveals how many exchanges have already been wiped out by crypto winter

Charlie Taylor

Surviving the sharp price drops that most cryptocurrencies face in recent months in the so-called ‘crypto winter’, is proving difficult for companies that operate in the area and that depend on the interest of investors to profit. Crypto asset trading platforms closed their doors and ceased to exist. The estimate made by Finbold takes into account the exchanges tracked by the price aggregator CoinMarketCap. If on June 6th the platform identified that there were 525 exchanges operating in the market, this number dropped to 500 on Wednesday, July 6th. compare the number of brokers listed in the past in the aggregator when using tools like the Web Archive. Although the number represents a significant drop in the month, when opening the scope of analysis to a year, at least 116 new brokers started operating in that period – and they are still alive – on the market.

Surviving the Crypto Winter

At this low moment, it is the smaller companies that suffer the most from the market’s cooling, while more mature brokers have reserves to burn and remain operational. Even in these cases, few pass the bear market unscathed. Several exchanges have already been forced to reduce their staff and pause international expansions to face this moment of crisis whose end is still uncertain. liquidity. As FTX CEO Sam Bankman-Fried revealed, many brokerages are “secretly insolvent,” meaning they don’t have enough money to pay off their debts or pay customers. In practice, this means that these companies are broke.

wave of bankruptcies

Although the entrepreneur did not reveal the names of which exchanges are in this situation, the crypto community is already aware of the serious situation in which companies such as Three Arrows Capital, Voyager Digital, Babel Finance, BlockFi, and Celsius — the first of the Cryptocurrency lender Voyager Digital, for example, filed for bankruptcy on Tuesday (5), proving that the $200 million loan offered by Sam’s company Alameda Ventures Bankman-Fried, was not enough to save it. Voyager estimates it has 100,000 creditors and between “US$ 1 and US$ 10 billion” in assets, with an equivalent volume of liabilities. “We strongly believe in the future of the industry, But prolonged volatility in crypto markets and Three Arrows Capital’s default require us to take this decisive action.” said CEO Stephen Ehrlich on Twitter. In a statement, the executive said that reorganizing the company “is the best way to protect” Voyager’s assets. bankruptcy last week — as its portfolio was almost 60% made up of loans to 3AC. As a result, Voyager was suspended from trading on the Toronto Stock Exchange this Wednesday (6th).
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