Blockchain analytics firm Chainalysis recently made a series of tweets about the collapse of FTX. She mostly compared the FTX bankruptcy to that of Mt. Gox in 2014. Check out the observations Chainalysis made on the two unfortunate events.
Why should the crypto space be optimistic?
According to a publication series from Chainalysis on Twitter on Nov. 23, the crypto industry has seen worse than the FTX affair. The blockchain analytics firm said: “The collapse of FTX shook the crypto market. But this is not the first time that the crypto has faced significant turbulence related to the collapse of an exchange. “.
Through the Twitter feed, the head of research for Chainalysis explained that the crypto industry flourished after the collapse of Mt. Gox in February 2014. Eric Jardine nevertheless acknowledged that there was a slowdown in the sector following this bankruptcy. “On-chain transaction volume stagnated for about a year“, he said.
The specialist added:Although the impact on the market was bad, it rebounded relatively quickly“. According to him, the marketquickly more than doubled its pre-collapse level of Mt. Gox».“This comparison should make the industry optimistic“, reassures Chainalysis.
The Mt. Gox exchange case was more important
It appears from the Chainalysis analyst that Mt. Gox has had a greater impact in the overall exchange ecosystem than FTX. Indeed, the company explained:In the year before it closed, Mt. Gox averaged 46% of all exchange flows, while FTX averaged 13%“.
“Objectively, Mt. Gox was a bigger player in the industry than FTX at the time of its collapse. [..] Mt. Gox accounted for 10.9% of total service entries in the 12 months before its collapse, compared to 4.7% for FTX“, she pointed out.
However, Chainalysis highlights the fact that there is notable differences to take into account. He quotes in particular Sam Bankman-Fried who was “the face of the industry for many“. In this context, the bankruptcy of FTX will further damage the way cryptos are perceived.
For Chainalysis, if the crypto was able to thrive after the collapse of Mt. Gox, it will manage to survive the bankruptcy of FTX. However, the blockchain analytics firm believes that “leverage risk is probably higher now than before“.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
