Blockchain analytics firm Chainalysis recently made a series of tweets about the collapse of FTX. She especially compared FTX’s bankruptcy to that of Mt. Gox in 2014. Check out the observations Chainalysis made about the two unfortunate events.
Why should the crypto space be bullish?
According to an publication series of Chainalysis on Twitter on Nov. 23, the crypto industry has seen worse than the FTX affair. The blockchain analytics company said: “The collapse of FTX shook the crypto market. But this isn’t the first time crypto has faced significant turbulence associated with a stock market collapse. “.
This was explained by the head of research at Chainalysis via the Twitter feed the crypto industry flourished after the collapse of Mt. Gox in February 2014. Eric Jardine nevertheless acknowledged that there was a slowdown in the industry after this bankruptcy. “The transaction volume on the chain stagnated for about a year“, he said.
The specialist added:Although the impact on the market was bad, it recovered relatively quickly“. According to him, the marketquickly more than double its pre-collapse level of Mt. Gox».“This comparison should make the industry optimistic“, Chainalysis reassures.
The Mount Gox swap case was more important
It appears from the Chainalysis analyst that Mt. Gox has had a bigger impact on 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 a bigger player in the industry than FTX at the time of the collapse. [..] Mt. Gox accounted for 10.9% of total service enrollments in the 12 months before the collapse, compared to 4.7% for FTXshe noted.
However, Chainalysis emphasizes the fact that it is notable differences to be aware of. In particular, he quotes Sam Bankman-Fried who “the face of the industry for manyIn this context, the bankruptcy of FTX will further damage the way cryptos are perceived.
For Chainalysis, if crypto could thrive after the collapse of Mt. Gox, will it manage to survive FTX’s bankruptcy. However, the blockchain analytics company believes that “Leverage risk is now probably higher than before“.
Get a summary of the news in the world of cryptocurrencies by subscribing to our new service fromdaily and weekly so you don’t miss any of the essential Cointribune!
Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only added to my enthusiasm. I therefore decided to study and understand the blockchain and its many applications and to pass on information about this ecosystem with my pen.