Redditor Cautions Users About Trusting Exchanges

  1. A Reddit user has gone out warning crypto users of trusting exchanges.
  2. A bull run phase is projected to begin after the next halving.
  3. In 2020 alone, 34 exchanges vanished mysteriously while 31 exchanges shut down willingly.

A well-known user recently took to Reddit to provide a warning to people who keep and trade their digital assets through cryptocurrency exchanges. In a more concrete sense, the user advises crypto supporters to utilize exchanges as exchanges and to take control of their keys by having cold storage solutions available. The user adds;

If you don’t have the money just use a hot wallet of your choice. Make sure we avoid repeating 2022.

This report purportedly arrives at the same time when a bull run phase is projected to begin after the next halving, which is planned to take place in the second quarter of 2024.  Experts predict that a large number of new exchanges, hedge funds similar to 3AC, and “promising” initiatives similar to Celsius will emerge in the market.

It is essential to keep in mind that, according to reports, 368 exchanges have ceased operations since 2014, and 161 of those exchanges “simply disappeared.” 

According to other reports, 87 businesses ceased operations because of issues relating to their businesses, while another 29 businesses shut their doors because of issues relating to regulations. During the same period of time, 47 companies went out of business after changing their names.

On the other hand, 15 companies failed as a direct consequence of cyber attacks, and 29 as a direct result of fraudulent schemes.

In 2020 alone, 34 exchanges vanished mysteriously while 31 exchanges shut down willingly. Both the Dutch exchange NLexch and the Chilean exchange Chilebit were shut down by their respective governments.

Additionally, on January 11, 2021, 16 exchanges closed, making it the day with the most closures. On this day, 11 exchanges just vanished, 3 were forced to shut down owing to business concerns, 1 was a fraud, and 1 was rebranded.

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Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

programmer & freelance writer