December 5, 2022

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Crypto has survived worse than the fall of FTX: Chainalysis

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Crypto has survived worse than the fall of FTX: Chainalysis

Blockchain analysis firm Chainalysis has compared the fall of Mt. Gox to FTX to determine how FTX’s bankruptcy will impact the ecosystem.

It concluded that FTX was a relatively smaller part of the crypto industry than Mt. Gox was at the time and that the industry should bounce back stronger than ever.

In a Nov. 23 Twitter 

In Feb. 2014, Mt. Gox suspended trading, closed its website, and filed for bankruptcy protection after losing 850,000 Bitcoin (BTC) in a hack.

Customers who had holdings deposited on the exchange have still not received their funds back, but the Mt. Gox Trustee announced on Oct. 6 that creditors have until Jan. 10, 2023, to select a repayment method for the 150,000 BTC reportedly in their possession.

Monthly service inflows for crypto before and after Mt. Gox collapsed. Source: Chainalysis

Jardine believes that although there are other factors such as Sam Bankman-Fried’s large public presence, the “comparison should give the industry optimism,” as when it’s boiled down to market fundamentals, “There’s no reason to think the industry can’t bounce back from this, stronger than ever.”