- 27 crypto exchanges vanished in 2022 alone.
- Only less than 500 crypto exchanges are currently active globally.
- FTX owes to be a major reason for large layoffs.
As all the crypto followers know, the year 2022, has not been lucrative like the previous year. However, hopes were not that high for the year 2022. On the contrary, the exact opposite happened. The year 2022, is now considered as a complete ‘Bear Year’, owing to various factors.
Accordingly, till date, in 2022 alone, it’s estimated that around 27 crypto exchanges have vanished completely. The major game player here is the FTX, which has had its complete knock down recently, making a tragic scenario for the entire crypto industry.
Behind the Vanish of Crypto Exchanges
As going by the statistics, around the mid of 2022, there were about more than 527 crypto exchanges operating worldwide. However, in just a month, by the end of July, 2022, the number of active crypto exchanges went down to below 500.
All this is a result of a tragic bear market followed by another bear market subsequently. In addition, the sudden fall of the FTX exchange which indeed owes to the second largest next to Binance suffered its fate recently.
The fall of FTX crypto exchange has had extremely fatal outcomes upon the entire crypto industry. Apart from losses in millions by the investors, various firms which were either directly or indirectly dependent upon the FTX exchange, suffered the same fate, and were closed down, ending in bankruptcy.
Also, as many of the employers, and investors lost their possessions, they were forced to reduce their workforce. This resulted in a massive layoffs, prominently upon crypto based firms, including the media too.
Likewise, OpenSea, the global NFT exchange also has laid-off about more than 20% of its entire staff. Such drastic measures are the only solution for withstanding such a time period of back to back bear markets. Moreover, the decline in the price of Bitcoin (BTC), also largely accountable for such a bearish year. BTC from the start of the year, has declined drastically reaching extreme lows by the mid of the year, prevailing a long bearish market on the whole.