By now, it has become obvious that the year 2020, has been the most promising for the cryptocurrency industry. Whether it is a matter of reliability, scalability, or adaptability, the cryptocurrency-blockchain industry has achieved it all with the highest stats.
One of the main factors behind this growth and development is the COVID-19 situation. As a result of the Coronavirus outbreak, thousands of companies had to shut down due to a lack of demand or funds.
Due to mass company shutdowns, there were millions of people around the world who lost their sole source of income. Many people ended up losing all their savings just to survive through the pandemic, waiting for the emergency to be lifted off.
All of these factors resulted in the global economy to face the worst dip of the Twenty-First Century. However, the Cryptocurrency and Blockchain industry did not seem to take much of a blow from this condition.
People who lost their jobs, found cryptocurrency to be the safe haven that helped them in keeping the money flowing. Even when the lockdowns have been lifted and the economy has started to get back on its feet, there are many people who have decided to stay with the crypto-industry.
This is why the cryptocurrency industry is observing the best year and is exceeding all its benchmarks. However, this has not been the case for every cryptocurrency exchange. On one hand, the crypto-industry has seen the highest growth compared to the rest of the years. But on the other hand, the numbers of frauds and casualties in the crypto-industry have been on the highest as well.
As per the stats shared by the crypto-analysts, more than 75 cryptocurrency exchanges have shut down in the current year. The reasons that these closures are attributed to are due to scams, disappearances, and hacks.
The data shared by the Crypto Wisser Exchange Graveyard revealed that in the current year, five crypto-exchanges were labeled as ‘Scams’. Then there were four exchanges labeled as ‘Hacked’, which include Narae and Altsbit.
The data also revealed that around 34 crypto-exchanges were labeled as ‘MIA’ with no official announcement being made by their developers. There were 31 crypto-exchanges that were shut down voluntarily. There were two crypto-exchanges in particular (Chilean Chilebit and NLexch), which were reported to have been shut down by their respective governments.
The only explanations behind these shutdowns are attributed to the lack of regulatory and security infrastructures. The trending crypto-exchanges that offered DeFi solutions and decentralized platform brought the centralized crypto-exchanges to their demise.
Another factor that resulted in the closures of many small crypto-exchanges was the pressure that the world governments had started enforcing. The pressure was mainly around the regulations that stressed upon KYC and AML policies.