Crypto has survived MtGox and will survive FTX: Chainalysis

On November 24, research firm Chainalysis compared Mt.Gox as it was not the first time that the cryptocurrency world had been rocked by a stock market crash.

Mt.Gox was the first Bitcoin exchange, but it collapsed in February 2014. Crypto has survived and thrived, and will do so again despite all the mainstream media FUD.

The Japan-based exchange was hacked in early 2014, resulting in the loss of approximately 750,000 BTC, or 6% of the total supply at the time.

Jokes Mountain vs. FTX

When comparing the two, it is worth noting that Mt.Gox had a larger market share than FTX, with 46% of exchange inflows compared to 13%.

String analysis He said That Mt.Gox was objectively a bigger player in the industry which is a good thing because its collapse did not destroy crypto.

One difference is that Mt.Gox’s market share has decreased, while FTX has increased. This could mean that the collapse of FTX was a bigger psychological blow to confidence.

In addition, crypto services were limited to a few exchanges in 2014, while they are now more diversified, with DEXs accounting for nearly half of all exchange flows by the end of 2022.

After crashing eight years ago, on-chain transaction volume stagnated for about a year but quickly rebounded, doubling pre-Mt.Gox levels. This time, cryptocurrency investors moved assets from exchanges to self-custody.

“This comparison should give the industry optimism. Mt. Gox was a bigger part of the crypto ecosystem when it crashed in 2014 than FTX is now, and while the market impact was bad, it has recovered relatively quickly.”

Another factor is that SBF was considered one of the leading faces in cryptography. But as traders and investors have learned painfully, putting your trust in a centralized system run by one person can be a really bad idea.

Additionally, cryptocurrency has been diluted through lending and leverage, exacerbating the house of cards effect if security is questionable, as was the case with FTX.

Chainalysis concluded that the cryptocurrency industry has weathered the downfall of FTX worse, so there is “no reason why it hasn’t bounced back, stronger than ever.”

Crypto Market Outlook

Since the low bearish cycle earlier this week, the total market capitalization has recovered $44 billion. Markets are up 3% on the day and the total cap is now $865 billion, but that’s still in deep bear territory.

Bitcoin prices are up 2.3% to $16,564 and Ethereum prices are up 4.6% to trade at $1,184 at the time of writing.

The post Crypto Survived MtGox Will Survive FTX: Chainalysis appeared first on CryptoPotato.

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