Reasons for company deaths range from blows to voluntary closures
The Cryptowisser cryptomede service comparison site has created a list that it named „exchange cemetery“ in which it shows cryptomede brokers who disappeared, closed voluntarily or by order of a government or were scam.
From blows to Crypto Method brokerage created by XP: the seven companies in the sector that closed in 2020
Of the 180 that appear, there are five Brazilians – OmniTrade, Rippex and Hadax – that are listed as voluntary shutdowns; 3XBIT Ore.bz that are classified as simply „missing,“ although the former has injured hundreds of clients.
In a press release, the company says there was a 56% increase in inactive cryptowisser brokers compared to last year, representing what Cryptowisser considers „a volatile and competitive industry“ and which shows no signs of slowing down this pace.
„While the overall crypto industry continues to experience impressive growth, it is challenged by competition, saturation and ever-increasing regulations,“ the publication says.
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Among the reasons cited for these bankruptcies are voluntary disconnection, hacker invasion, coups and deactivation by the government in some countries. There is also a vast number that simply disappeared without public explanation or were coups.
Cryptowisser explains that there are basically three groups of competitors responsible for the end of centralized cryptomorphic brokers: decentralized brokers and derivatives brokers.
„For a new centralized exchange to flourish, it will probably need to have some form of exclusive advantage that does not yet exist on the market today. The days of launching an exchange and waiting for a bullfight are over, and have been for some time now,“ the text says.
Cryptowisser is a cryptomorphic comparison site, like CoinMarketCap, which compares and analyzes cryptomorphic brokers, wallets, merchants and debit cards.