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Blockchain analytics firm Chainalysis compared the collapse of Mt Gox to FTX to determine how FTX’s bankruptcy would affect the ecosystem.
He concluded that FTX was a relatively smaller part of the cryptocurrency industry than Mt. Gox at the time, and that the industry should bounce back stronger than ever.
On Twitter on November 23rd thread, Chainalysis head of research Eric Jardine began the comparison by first looking at the market shares of the two companies, and Mt. We found that it accounted for an average of 46%. 13% operated from 2019 to 2022.
Centralized exchanges (CEX) were the only players when Mt. Gox collapsed in 2014, but by late 2022, nearly half of all exchange inflows will come from decentralized exchanges such as Uniswap and Curve. Captured by DEX.
However, Jardine notes that while FTX is slowly gaining market share, Mt. Gox’s market share is steadily declining, and the trajectory of the business is worth considering. I am adding.
Mountain. Gox was becoming one of many exchanges during the growth period of the category, holding a small share of the larger pie. FTX, on the other hand, held a larger share of the shrinking pie. and was beating out other exchanges even though raw trading volume was down.
Nonetheless, Jardine concluded that Mt.Gox was a linchpin of the CEX category during the CEX era, and was a bigger part of the crypto ecosystem at the time of its collapse than FTX. rice field.
Jardine then explored the crypto industry recovery after the Mt.
Related: Sam Bankman-Fried says he is ‘deeply sorry’ for the collapse in letter to FTX team
In February 2014, Mt. Gox stopped trading, closed its website and filed for bankruptcy protection after losing 850,000 Bitcoins (BTC) in a hack.
While clients who have deposited on the exchange have yet to receive their funds, the Mt. Gox Trustee will have 150,000 BTC reportedly in their possession by Oct. 6 and creditors by Jan. 10, 2023. Announced that you need to choose a repayment method. .
Jardine believes, among other factors, such as Sam Bankman-Fried’s large presence, “the comparison should give the industry optimism.” From now on, we will be stronger than ever.
