On Wednesday, the on-chain analytical service Chainalysis made a comparison of the most recent FTX breakdown case with the 1st BTC trader to go under, Mt. Gox.
As a result, the analytical system came to the decision that the cryptocurrency market survived the previous crisis, and it will unquestionably survive the new incident.
Similarities between two traders
Of course, one of the most significant recent black swan events in the cryptocurrency market was the collapse of FTX. Analysts query whether it was sizable sufficiently to be equal to Mt. Gox.
However, according to many analyses, it is not the 1st case that the demise of an exchange would have an impact on the entire cryptocurrency market.
The first Bitcoin exchange to be operational was called Gox. However, in February 2014, it collapsed. The Japanese-based exchange suffered a hacker attack in February that year during which it lost almost seventy-five million BTC, or about six percent of its total retentions at the moment.
Despite the media’s attempts to instill fear, uncertainty, and doubt, according to Chainalysis, the crypto industry managed to survive and even thrive.
In order to properly compare the two exchanges, Chainanalysis says that it is important to take into account that Mt. Gox outperformed FTX in terms of marketplace share.
Back then, Mount Gox was in possession of forty-six percent of the total inflow of foreign exchange, while FTX only controlled 13% of it.
The mountain Mt. Gox played a bigger role in the sector. Given that the crypto industry was not completely destroyed by its collapse, it is regarded favorably.
The strength of crypto will increase
Chainalysis made the crucial observation that, as of 2014, few exchanges offered crypto services. But yet platforms are so varied, and this year’s exchange inflows have gone almost entirely to decentralized exchanges.
After the Gox case more than eight years ago, there was a nearly one-year pause in the volume of on-chain transactions, but at the time they restarted, they had grown twice the level before the mishap.
However, in the latest instance, stakeholders are removing their possessions from trading services and assuming self-management.