Cryptowisser: 75 Crypto Exchanges Dead in 2020 – More Will Follow
5th October 2020, leading Crypto service comparison site – Cryptowisser, announces its Crypto exchange graveyard. The detailed page lists and explains the many crypto exchanges (largely centralized exchanges) that have disappeared, expired or collapsed this year, giving an insight into the volatile and competitive crypto exchange industry. There was a 56% increase of dead crypto exchanges from last year with no signs of letting up. While the general crypto industry continues to see impressive growth, the crypto exchange industry is challenged with competition, saturation and forever increasing regulations.
According to their report, crypto exchanges “die” due to voluntary shut down, hacking, scams, and being shut down by the government. While the scams and hacking are self- explanatory- the voluntary and government shutdowns as well as the mystery disappearances can be explained.
Competition pushing out Crypto exchanges
Cryptowisser explains that there are primarily three groups of competitors responsible for the demise of the centralized crypto exchanges: decentralized exchanges, derivatives exchanges and non-crypto alternatives.
Decentralized Exchanges push centralized exchanges out.
DEXs typically have servers spread out across the globe, making them less susceptible to hacker attacks, and they typically also offer lower fees (sometimes zero fees). They are able to handle more trading volume and are often more attractive than centralized crypto exchanges.
Derivatives Exchanges see Growth
Another group of exchanges that have seen impressive growth are derivatives exchanges. A derivative is an instrument priced based on the value of another asset (normally stocks, bonds, commodities etc). In the cryptocurrency world, derivatives derive its values from the prices of specific cryptocurrencies, most often Bitcoin.
It is clear that derivatives exchanges are becoming stronger and stronger in the market, not unlikely to the detriment of certain centralized exchanges. Visitthe world’s largest derivatives exchange list to see which derivatives exchanges you have already heard of.
Non-Crypto Alternatives become more available.
With cryptocurrencies becoming more and more user friendly and less exclusively for tech savvy trades, non crypto alternatives are also growing.
While there is currently no conclusive data showing how many users that centralized exchanges lose to these non-crypto alternatives, it is reasonable to believe that they are – at least to some extent – a contributing factor to the mass death of centralized exchanges.
Regulations make it impossible for new Exchanges to survive.
As the industry grows, so does the need to regulate it.
A Dutch exchange called NLexch, had to close down just a few weeks ago (1 September 2020) and gave the following well-written explanation to why:
“De Nederlandsche Bank [NB: The Central Bank in the Netherlands] demanded that every cryptocurrency business should register with them. The registration is deemed to be mandatory, and businesses that fail to comply will be forced to close down operations in the country. The fees charged in the whole process are very high. The cost of providing the required level of security, support and technology is not economically feasible on our own.”
NLexch will not be alone, as the bigger more established companies make it harder for new exchanges to compete.
Concluding Remarks
For a new centralized exchange to flourish, it will likely need to have some form of unique edge that is not already on the market today. The days of launching an exchange and hoping for a bull-run are over, and have been for some time.
Cryptowisser is a cryptocurrency services comparison site with the world’s largest, most frequently updated and most trusted lists of cryptocurrency exchanges, wallets, debit cards and merchants. With more than 1,000 reviews of the various exchanges, debit cards, wallets and merchants, they help you make all of your purchasing decisions and service choices in the crypto world.
For more information please contact support@cryptowisser.com
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.While Darknet Users Search for New Markets, Global Law Enforcement Reveals Mass ArrestsNEWS | 5 hours agoNew Stimulus Checks: Barbara Corcoran Slams Mark Cuban"s Expiry Date Idea, Favors Long-Term ReliefNEWS | 9 hours agoTags in this storyBitcoin, crypto exchanges, Cryptocurrency, Cryptowisser, Dead Exchanges, debit cards, Derivatives Exchanges, Exchange, Exchanges, Wallets
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