The comparison yielded the strong fundamentals of the crypto markets.
Blockchain data firm Chainalyis has published a Twitter thread, giving their take on the recent crisis plaguing the crypto markets. With the example of the crypto exchange Mt. Gox that failed back in 2014, Chainalysis claimed that the crypto space had experienced unfortunate circumstances even before 2022 and yet managed to pull through the years successfully.
Eric Jardine, Research Lead at Chainlaysis, compared the case of Mt. Gox with FTX and concluded that FTX had affected the industry more severely since its market share was gradually climbing up before its bankruptcy, even though it was a smaller exchange in terms of total market share. “Mt. Gox was becoming one exchange among many during a period of growth for the category, taking a smaller share of a bigger pie. FTX on the other hand was taking a bigger share of a shrinking pie, beating out other exchanges even as its raw tx volume declined.”, stated Jardine.
He went on to clarify that half of the market consisted of DEXs in present times, contrary to CEXs dominating the markets in 2014. He also blamed Sam Bankman-Fried’s image as the ‘face’ of the industry, leading to a deep mistrust of the industry. The thread concluded on a positive note, stating that crypto was bound to bounce back stronger as long as the fundamentals of the market remained strong.