Bitcoin Forum

Looking back in history since Bitcoin was created back in 2009
There were a lot of different exchanges like

• FTX, November 2022. Bankruptcy Type.
  Three Arrows Capital, July 2022. Bankruptcy Type.
  BlockFi, November 2022. Bankruptcy Type.
  Core Scientific, December 2022. Bankruptcy Type.
  Voyager Digital, July 2022. Bankruptcy Type.
  Celsius, June 2022.
  Babel Finance, June 2022.
  Hodlnaut, August 2022.
  Cryptopia ,
  Bittrex ,

It happen with all and it can happen with Current ones
e.g the last one KuCoin like 7 Days ago two of its founders were charged with violating anti-money laundering laws by U.S.
Be smart and keep your assets SAFE always use a Cold Wallet Your Keys Your Coins

Does this concern you ?

No.

And that is because I am just a casual user of the exchanges and I am using them as what they've been built for and that's to trade only there. I don't keep my assets there and that's why it doesn't really concerning nor bothering me.

But those investors and traders that are keeping their funds on any exchange, you've seen how the reputable ones get into trouble and don't be too confident with the current ones that has no record yet.

Because if they're transparent then I don't think that there's gonna be a big problem for them.

Mismanagement of assets. Some exchange use users funds on investment to gain profit out of their customers money just like banks doing on the assets entrusted to them. The difference is crypto exchange has less liquidity than banks while they are investing on too volatile assets that’s why one wrong investment can collapse the business when followed by multiple withdrawals from whale traders.

Having a strict regulation and audit on casino funds will solve this issue on exchange. Exchange can be transparent by posting all their funds wallet to check whether their assets is 1:1 backed the user funds. Current exchange can still suffer huge loss since many people becomes greedy in crypto because they can hide their tracks due weak regulation.

This is already the case with regulated exchanges such as the Austrian exchange Bitpanda. Bitpanda has to prove that it actually owns its customers' funds and is regularly audited to this end. I personally have my ETH in staking at Bitpanda and have absolutely no bad conscience about it.

Unfortunately, this is by no means the case with all exchanges and certainly not as transparent. So you don't know whether the exchange is gambling with customers' funds, whether it is holding them at all or whether an exit scam is imminent anyway because the customer coins have already been gambled away. Unfortunately, there are more than enough examples of this in the past.

Anyone who wants to know more about Bitpanda and how to keep the funds safe, please follow this link: Security at Bitpanda (https://www.bitpanda.com/en/security)

Running an exchange is a serious business. It is much like unlicensed banking. They mostly run on fractional reserve just like real banks. Meaning they let people own more crypto than the actual crypto in the exchange’s cold wallets. When there is bad news, people run to the exits but the exchange in question doesn’t have these funds. They go bankrupt just like the real banks. Actually they go bankrupt even quicker because there is no government to bail them out. If the governments weren’t interfering, we would see more banks filing for bankruptcy today. That’s a healthy occurrence. They shouldn’t be chewing more than they could afford to swallow.

Which is the only single take home message from this community but members have been saying this over and over again but the few people in the forum do not contribute much to the vast number of users attending these exchanges daily.

Hence whenever such shutdowns or scams happen, a large chunk of money from these users will be lost in limbo for the time being.

If you are regularly using an exchange then it would. But crypto is the wild west and these risks are common here unless something big happens or we see some regulation come in.

This actually concerns everyone that leaves their funds in centralized exchanges especially people that hold altcoins in the exchanges.

The main reason why Centralized exchanges go bankrupt is because of different people controlling the exchange, this has made it centralized because any issue that might occur will lead to bankruptcy because once one or two officials were arrested, there is a high chance that the exchange will be forced to stop their services immediately to prevent people from falling victim.

These KuCoin issues will be resolved soon I guess because they did not scam people and have strong community and now have reputation as Binance as they are regarded as one of the best Centralized exchanges.

This does not concern me at all. I just use these exchanges to cash out Bitcoins or swap coins. I never store huge amount of coins in these exchanges. Moreover I have always used the Binance and Bittrex from the past few years. I never jumped to other exchanges and hence always ignored what’s happening there. The main reason for which these exchanges shut down is the transparency with the customers and government. Nothing can be done. Use the ones which are already available in the market for long term.

Partially agreed with your point as we can use cold wallets to store the assets and it would work for investors but what about daily traders they had to have funds into exchange and unfortunately we cannot sustain with DEX due to low liquidity and UI hence CEX is preferred to trade and store value hence it's a no way out for traders unfortunately.

Many are already smart but as the flock of newcomers to the market they're not yet experienced. They are still keeping their assets in exchanges. They have to remember these reminders that we're telling them that they don't own the keys when they keep their assets on exchanges.
Looks like they're unstoppable and won't be following these tips that we're giving to them and so, we don't want to happen what shouldn't happen like this fiascos done by the exchanges.

Just to make sure, are yo 100% sure that the last two exchanges are bankrupted, I mean, according to data Cryptoia was hacked not bankrupted, and Bittrex is still functional. From where did you took this data, I think you should double check it as it's not accurate. Other than these 2 every exchange is bankrupted.
Yeah, this concerns me, when the case about Kucoin went public, everyone panicked and started to withdraw their funds from the exchange, I also used Kucoin for some trading purposes, and also rushed to see if I still had my funds on it or not well relieved to see I withdrew all some time ago. Well, the funds were not that much the point is, this short experience that I got after hearing the news must have given me goosebumps to every other person holding his/her funds on that exchange.

I wonder who will have $100, $1000, $10,000 and more. This is just a reminder for all of us to keep our assets in distributed places, ok I got it, you want to use CEXs and don't want to get into using DEXs or cold wallets, then at least we should distribute our funds in different CEXs, as keeping funds on only one centralized exchange is a risky thing.

I'm not worried about the exchanges as I've never held assets there, perhaps a slight concern would be the impact on the entire market price dropping if one of the major exchanges collapses.

Some exchanges collapse because they fail to manage investors' money properly they don't have healthy reserves so it becomes a crisis when the market is bearish or they lend to the collapsing exchange then it's the same thing.

It is the same with the FTX exchange where SBF steals customers' money for its own benefit by spending a lot of money that does not belong to it.

Yes, because whichever you place your holdings there truly is a risk. Those exchanges where treated most as banks rather than as transaction center. It does not contribute to the very essence of Bitcoin to remiove the banking system at least which every transaction can be done by person to person. Most of them also are not regulated and have no proper proof and papers to operate that's why those are being shutted down or chase by the governments.

So instead, I agree to just put your btc and altcoins with cold wallet. There you are holding it just much like a piggy bank or wallet instead of putting it on an exchange like you use it as a bank.

As I notice, there are two main reasons why an exchange is not surviving or failing to stay. One of the most common is that the exchange or its owner itself is committing crimes associated with the exchange, as in the case of the OP, the recent one of Kucoin, its owner committing or violating the ban on money laundering, and many more exchanges that do bad things, which is why their exchange also fails.
 
Second is that, as there are many exchanges existing right now, it is hard for new exchanges to survive. It is like surval at the fittest; you need to be unique or popular in order to maintain your exchange. So,  in short, maintaining an exchange despite the numerous existing exchanges is very hard. You need to become or the owner needs to become innovative in order to attract more people or users and in order to survive, or else they will not last for too long.
 

I get your points for traders who need to use some of this centralized exchanges most especially the future/perpetual traders due advantages that they offer like better liquidity and high leverages. What you should do in situations like this only put in little amounts of funds in an exchange, an amount that you can afford to use and also you can diversify the exchanges and use something like 2 to 3 exchanges. Almost all the big exchanges offers same advantages on trading and with this diversification you cannot lose everything on one exchange since it is rare for two or more exchanges to collapse or been closed at same time. Then after that you can withdraw all your profits to your custodial wallets for long term storage, this can be done weekly or monthly

there is something that you have to understand especially in storing your Bitcoin so if you want to save your Bitcoin you don't need to use exchange and this information of not to use exchange to store or save your bitcoins, used to be passed across this forum especially in beginners and help board or section, but some people will not understand why many people continue to Lament that using an exchange to serve your coins is not really proper they can use non- custodia wallet to save your Bitcoin instead of using an exchange that they can be easily hacked or attack by government at any point in time.

Some of these exchanges does not have a license to operate and that is why they can be easily be fold or seized by the government that is why whoever that is a good investor of cryptocurrency can never store it s coins especially Bitcoin to exchange wallet.. this has happened to many people so I think the information is clear and then why we are passing this information is because of the new users of this forum who haven't known the disadvantages of using an exchange platform to save its funds.

there is something that I want to ask you, don't you think about some of the exchange might decide to run a scam exchange platform in order to extort funds from their client, because this has happened to binance exchange and the binance happened to be one of the biggest exchange today that exist, so when binance was hacked binance came back and the try to refund so many people that locks their money through that, so that is to show that binance is not operating illegally why if any exchange that something like that happened and they failed to return that means it might be a conspiracy in order to scam people.. that is why I say that there is every possibility that if an exchange that is operating well stops today by government it maybe that one of the cabinet of exchange may have form alliance with government to redirect everyone funds in that platform to themselves.

I think daily Traders is exempted in this scenario because they threat in exchange platform and saving their funds in cold wallet will not be of help to them but they can decide to make sure that they remove their capital and store it to non custodian wallet so there is difference between a daily Trader kind of saving of coin in exchange platform and investor, so my advice is that a daily traders have to bring out their capital and trade with their profits should in case if exchange experience a hack attack it will not affect them.

It is right but let us believe and know that is not all exchange that crash on the way or being seized by the government it is obvious that any exchange that operate with license cannot be seized except that they perform an illegal act by doing all involving themselves in money laundering, some of the exchange today which I know quite well has been operating for years and they don't experience any loss it is because of they have an anti hackers who operate with them.... but splitting your money or your funds from exchange to cold wallets will be of benefit for any trader.

You made a list of just 2022, what happen to other events that happen before that? You didn't include one of the biggest Bitcoin heists in Mt Gox exchange, to date nothing has been refund to the customers. In 2020, Kucoin about $150M was hacked from Kucoin but they were able to recover them after investigation of the staffs. All what has happened on exchanges send a coming message which is "Not your keys, Not your coins".

Humans are not like computers, human can make a mistake but computers doesn't, this is the difference between a man and a computer, and a man can make mistakes and this mistake is the reason why centralized entity is difficult to manage. If you don't have anything on any centralized exchanges, what happen behind the scenes doesn't need to worry you because you have nothing with them except when you chose to trade.

Reminder: do not keep your money in online accounts (https://bitcointalk.org/index.php?topic=5421039.0).

Also you can see Exchange graveyards (https://www.cryptowisser.com/exchange-graveyard/) with Time and Cause of Death.

Most of exchange death causes will be

• Scam exit
• Hack and fail to compensate users, fail to recover itself
• Bad treasury management includes customer money; and bad risk management such as over leveraged; then bankrupt

Exactly! We can really relate this to the OG exchange in Bitcoin which is Mt. Gox.
As everyone knows already, Mt. Gox exchange experienced most of the list that said tranthidung and Mt. Gox is the best example how these tragedies can effect an exchange even how good or nice your exchange is.

Many factors make some exchange market got failed from bad management assets, internal problem and hack cases by their own self member with losing much fund then some the exchange difficult recovery their member fund. But most honorable with some exchange market failed give opportunity for their costumer withdrawing all their fund before the exchange operation close and there are not any loss from exchange and the costumer like Hotbit and Bittrex give more than several months left for withdrawing assets.
But for FTX I don't what behind of this exchange become scam, actually I am so excited with this exchange without withdrawal fees and become my favorite exchange with withdrawing ethereum for fees transaction.
Once time an exchange have been scam never has opportunity get back our fund such as Mt.Gox fake promising will refund their bitcoin assets costumer until several years after hacking cases happening not refund yet until right now.

First of all Bittrex didn’t go bankrupt they just ceased operations due to regulations.

The others on your list such as Three Arrows capital isn’t an exchange. It was a trading firm which over leveraged and went under.

There are many exchanges that never did what FTX did, like Bitstamp or Coinbase. Many exchanges are legit and honest. Don’t let a few bad apples ruin the entire bunch.

 It is quite disappointing in the sense that it affects also the reputation of the crypto market but can't just hold on and keep these projects when the don't have;
 - lack of legality to run a business
 - lack of system support
 - improper management and use of funds
 - and most of all, lack of transparency that makes people to doubts

It is the reputation of the site means a lot to the users and active traders/investors. If this can never be found to an exchange, of course, nobody will take the risk and lose their money.

It does, not directly, but indirectly.
It doesn't affect me directly because I don't lose money with the collapse of those exchanges, but it affects me indirectly because things like this affect the industry. It takes the growth of the industry a few steps backward. The government keeps looking for ways to discourage crypto, they fight it with whatever they can find, and things like exchange collapse just give the regulatory agencies more ammunition.

Most people in my country don't mind using centralized exchanges and that has made it difficult to see people who are ready to buy Bitcoin in exchange for my local currency on decentralized exchanges, because of this I use a centralized exchange that does not require KYC, but with the recent regulations, selling or buying bitcoin on that exchange without KYC is no longer allowed.
That's why I said it doesn't affect me directly, but it does indirectly.

I don't keep my assets on a CEX but I'd say it does concern me. Cases of bankruptcy cause the market to bleed like that of Mt. Gox exchange that affected the prices of crypto assets and it took a while for the market to bounce back. Also, it gives the government reasons to paint cryptocurrency black and discourage people not to invest. So I think this should be everyone's concern and we should try to sensitize people on the dangers of having their funds on CEXs.

Most businesses regardless of the industry of which they are part of will fail, and exchanges are no exception to this rule, so it does not worry me, but it is because of this that we try to warn newbies about the dangers of leaving their coins for a long period of time on those exchanges, but they simply do not get it, and many of them do not realize their mistake until it is too late and they have lost their coins to one of those exchanges and then they complain bitterly about it.

And because of this, crypto users need to be wary of centralized exchanges because at any time their services can be disrupted by various problems, whether internal or external. So always make sure that if you want to hold Bitcoin for a long period of time, a custodial wallet is the best choice for this. Because when you store your assets on an exchange, at any time those assets could disappear along with the service going bankrupt. But when you store your Bitcoin in a custodial wallet, you don't need to worry about your assets being lost, since you are the only one managing the wallet.

It is simple really, you give someone billions in dollars to hold, while you trade, and they end up making a fail. Remember, not only crypto, but fiat goes into their hands as well, and not like they are audited which means that you do not know if all that money is actually in there. Which they could use to make even more money, imagine a place has 1 billion dollars, even if they absolutely no trading fee or anything, they could simply just put that money into savings, literally the least risky thing, and still make tens of millions of dollars from it. So that is exactly why they are taking risks and then losing.

Of course there are also ones that gets hacked, that's a security issue and I can see why something like that could happen with any exchange which means we should never use exchanges as a wallet; move out your coins as soon as your job is done with the exchange.

It should be of concern to every other individual who uses kucoin or any exchange for that matter to accept the risk involved and still trade or transact on that exchange.

Its also important to use cold storage wallet for large investment that could be more than several years altogether else, small savings or HoDling or coins that can be spent swiftly can be received on an exchange and used there for payments and transactions.

Exchanges fail for not adhering to the government laws and policies of setting up a business and delivering good service that's transparent and free of money laundering accusations as well as free from hacks and scammers.

As a trader, this may be a cause for concern, but not all exchanges will suddenly experience problems. There will be a process or notification from the media that can be obtained, therefore if you are a trader on one of the exchanges you must always follow every update from that exchange. Like it or not, you have to be the most updated because the assets are there.

However, hodlers don't need to worry because centralized exchange is only a temporary bridge and it doesn't take long, buy then withdraw to a cold wallet.

If there are exchanges that fail in this field of the crypto space, it is because the volume of traders is low. Of course, if there are no buyers entering an exchange, no funds will enter the exchange.

It's no different when you set up a casino; if there are no gamblers to enter money to play in the casino, the casino will not be able to survive. The same is the case with the exchange, especially if the competition in the market is intense.

The examples and comparisons you give really make sense because in general every place is not visited by many people, either to buy the products in it or to use the services in it. This place will not progress and often even goes bankrupt because there is no money circulating in it so that whatever system has been developed will actually slowly die. Exchanges, banks and any casino places always need customers or users so they can operate well because for each user there are of course fees that must be paid to the exchange or the bank and also the casino.

That's not always the case with exchanges or other platforms failing. In this industry, a lot of projects including exchanges have failed in the past because of a lack of proper management from their owners or CEOs they mismanaged the funds of their customers which caused issues for the platform and such platforms went bankrupt or started losing interest from traders and investors when the news surpassed about what happened.

FTX is a very big example of that where SBF (Sam Bankman Fried) misused the funds of its customers and he was caught for that and recently was sentenced I believe 20 or something years in prison. After what he did, the exchange failed miserably and a lot of people lost a lot of money because of it.

Another example of mismanagement was LUNA, though it wasn't an exchange but the project failed due to poor management and bad decisions.

Looking from the list you have given, most of them were as a result of bankruptcy, which means to operate an exchange needs a huge financial stand, no wonder many of them exist as a joint collaboration, only few among others happened as a result of hack, making an establishment requires a lot of management practices to be in place so as to help see the business last in serving for it's purpose, none of these exchanges once affected ever come back again to life, the same way their users also lost their asset with them.

Learn from previous experiences where some exchanges failed so if you can't store assets on the exchange then it's nothing to worry about because you won't feel how assets are held only that this will have an impact on the market because people will panic and sell all the assets they have or move to other wallets.

The recent Kucoin incident is a sign that any exchange will fail we never know but when exchanges have problems with the law especially with allegations of money laundering from criminals then it will be strictly enforced.

I don't know why so many people still store on exchanges, is it because of convenience? Or is it more about trading? But still the assets held there will not be safe.

One of the thing im seeing that exchangers do really be able to experience is on having some legal issues on which this is where these business or platforms would really be usually having those kind of issues
or problems that they would really be able to face on on which we've seen in the past on how many sites that been switching up into that strict compliance about something and ended up on dropping their
users significantly until they've been not able to cope up when it comes to expenses and other stuffs until they would really be announcing some bankruptcy.

It could really be just only having that two possible situations on which it could neither be an exchange face up some legal issues or simply the community doesnt really
recognize them or simply pertains about the on the demand of the masses on which it would really be leading into that non sustainable kind of business
on which we know that it could really cause up on closing up doors.

The establishment of an exchange must obtain permission and this is done so that the exchange can operate and sometimes the owner or person who has shares in it plays dirty games such as money laundering. But not all exchanges do that and if the exchange wants to look bigger, maybe the founders and people who own shares in it will try to play clean so that their exchange can progress and develop.

I don't think it's good behavior to use an exchange to store the bitcoin assets we have because as far as I know there are many exchanges that end up having problems. The exchange is used by most people only for trading and transaction matters because the rest we will move assets to a wallet which is much safer and more secure.

Most times the way these exchanges fail is hidden from the audience. If it is exit scam, they can tag it hack. If it is mismanagement, they will also tag it hacking. So, it is necessary to know the real cause of exchange collapses and most times governments are not bothered because they are not much involved.

Most of the exchange fails to comply with the legal permits to operate which pushes the authorities to stop their operation, a common alibi. But there is one reason close to such stoppage as they are boldly scammed. A good reason why we should be careful in choosing an exchange especially if it is new and most of all, use them as storage wallets. Even though they are reputable exchanges and have existed for many years, still we don't have to store huge amounts with them just to keep them secured because it is easy for them to say "They get hacked" and say sorry but to expect them a refund is quite impossible.

The journey of any successful assets doesn't start well and end well. If you look at the growth path of Gold, they have had there own downs and up and they were able to set up a tight regulation to weed out some of these bad people. Are we going to see regulations here in crypto? Maybe or maybe not but things that has happened to FTX will send a great message to other people that will be trying to pull any stunt on people's fund and trying to run away because no place to hide. You can see that even with this little bull run, the casualties of hack and scams are not as rampant like back in the last bull run yet.

It will not only send message to people stealing funds but even those who keep their money on exchanges, people will learn the conventional way of storage of coins in there hardware wallet and air gap device instead of centralized exchanges that doesn't give them power of their wallets storage.

However, this news shows that there is panic. In fact, if I'm not mistaken, I also read that there were several large amounts of funds that were eventually moved from the exchange. This indicates that there is a large proportion of current holders or traders who still store their assets on the exchange.
I'm not so worried that some of the current exchanges will end up getting the same accusations in the future. now Kucoin, we don't know after that.

It doesn't concern us because if they were managing the exchange well and not misusing the funds of their customers they won't have been found guilty and the attacks on their reputation ends up making their exchange to shutdown. Exchanges are becoming greedy, I have seen that many of them are thinking that they're above the laws therefore they're operating any how without caring about the users making use of their exchanges. Exchanges are failing because they're violating anti-money laundering laws and any individual caught of this violation has to be punished in spite of the market not having a regulatory body. More centralized exchange are always going to fail because they're the exchanges that the government can attack and find faults as they'll always have greedy team members.

Exchanges are businesses, and it is not easy to keep a business functional for many years. Due to the many challenges both the internally generated and externally generated that can be faced in a business, so many businesses are not even able to survive a ten-year period.
https://www.entrepreneur.com/starting-a-business/the-true-failure-rate-of-small-businesses/361350

Some of these holders are investors who have no one to advise them properly that though they are investing, they are doing it the wrong way.

Our job is only to use the exchange for transaction purposes and buying and selling. Problems of abuse and their customers will be faced with the laws that apply in the area where the exchange operates. Therefore, we have to be smart about using exchanges and not using them to store the bitcoins we have. The mistake people make is not understanding how unsafe it is to store bitcoin on an exchange so that when they have problems they will lose the assets they own. There have been many exchanges that have experienced problems in recent years and they generally find it difficult to escape legal charges that result in blocking exchanges that do not obtain operational permits anymore.

But what we need to remember is that exchanges are not a place to store bitcoin because the level of security is still considered sufficient not safe. If you fail to understand a safe place to store bitcoins then any losses that occur will be the full responsibility of each of us. Now that there are much safer wallets for storing bitcoins, anyone has to find out which wallets can provide a sense of security for us to store bitcoins.

Yes, of course, it concerns me, and if not for my money, but for the money of those who would be their next victim. You can imagine those ones who have had issues of insolvency in the past, what happened to them? Till today, it is promises upon promises, but still, they've not redeemed it and people's money has been trapped ever since then. This is bad, I do not wish it for anyone. But the issue of Kucoin and any others that the US government charges or found guilty of misappropriation and money laundry is not a huge one because the worst is for the brains behind it to be jailed and the company fined just like what happened with Binance and CZ.

Even if they were charged much, the US government is responsible enough to ensure the safety of the company and their customers, so they will not enforce the compliance of the charges in a manner that will cause liquidation. The company will be okay, it is not the first time that companies would be charged with money laundry and I do not think there are so many global companies dealing with money can be exonerated from that.

Regulation might be the top reason but yeah, we cannot set aside the fact that they scammed their user and most of those failed exchanges have a bad history of customer service, probably they are meant for that. If top exchange like Binance will failed, what do you think will happen in the market? For sure there will be a huge panic and many will ask, what exchange you can trust if a big exchange like Binance will ended in the same faith?

thats why you never put all your egg in the same basket, using exchange is fine, as long as you don't put all your investment money in just one exchange i mean there are plenty reputable exchange out there why just put it in one exchange while the service to be honest from one another doesn't differ that much at best there might be some incentives and promos but thats it but indeed not your key not your money that is really a sacred saying when dealing with these exchange we just don't know when these exchange might just suffer from disaster.

it kinda reminds me of ftx, had those people that lost their money save it in their own wallet they won't be losing their money but instead ftx just collapsing with all the money of its customers still in their hand.
saving up the money by our own means even if using metamask is safer since that is your key and your wallet you have all the rights to it.
it should be a reminder for people out there if you are using exchange at least try to diversify it across various exchanges to avoid collapse of an exchange.

Well, I have said it here before. I only use two exchange and that's Binance and Bitget. With the last incident that happened with Kucoin, I did check the latter to be sure I'm literally safe with them and I found out they already obtained an MCB long before now and they also have a cold wallet; https://www.bitget.com/support/articles/360040068632-Bitget-Obtains-The-US-MSB-License

That's how the market works, you can't just start and keep growing and growing and growing. I believe that we need to reach to a point where things could go better. I believe that we need to consider the situation as something that is a bit more zoomed out, and that means something.

We should consider this situation as just a very normal market movement, and if you zoom out then you will realize that we are not doing anything that will change things all that much, so we need to realize that. When you look at weekly, you may see ups and downs, but if you look yearly, it is not bad, and if you look even further, it is doing great. So that's why we should all consider bitcoin to be something that will make us some profit in the end.

Good thing you chose these exchanges but never say you're safe 100%, you will never know what is their plan.
I've been a user of Bittrex but stopped before the collapse of this site. I have no bad experience with Bittrex nor do I think this would happen to them but yes, it was hard to figure out what is their mind (owners), they can stop their operations if they want to and show different stories to the public about their closure. Even in Kucoin, we can't assure our funds are safe until it was totally deposited in our fully controlled wallet address.

I think we can see that an exchange facing numerous problems may not be able to solve them, leading to its downfall. First is technology; I believe hacking is always easier than building. It takes a lot of work and effort to construct something, like building a house, but it only takes a hammer to break a hole in it and steal all your assets. Second is money; fewer people can resist the temptation of money. Yes, there's a lot of money involved. Why not take 10% from laundering black money rather than 1-2% from normal people? I believe people can see many problems, but I've just pointed out the two main ones.

I think OP are right and remind me of a common statement in this group, it's never store your assets in an exchange wallet, but always keep it in your own wallet. Actually, I have experienced this thing after quitting the crypto world for a while and I left several assets on exchange such as Forkdelta, Bittrex and Bibox. That asset has been lost forever and it has always remained seared in my memory.

Indeed, we really have to choose an exchange that has a good and trustworthy reputation. However, that is not always a guarantee. The point is that we must always be vigilant to keep our assets as safe as possible. Bankruptcy that occurs on exchanges is not in our control, but we must always care about where our assets are.

Sticking with the current best would really be the sweetest spot that you should really be doing but its true that never ever tend your coins to be parked on an exchange for too long which we know that risks involved that it could possible issues that might happen along the way.We've been through those tons of exchange hacks and issues that these platforms do really suffer on. We've been through tons of of situations on which we cant really be able to deny that it is really that indeed risky on leaving up your assets on exchangers. We do know that you dont possess the keys of your wallet or account so once they do have those kind of issues then it would really be that hard on making such recovery.
This is why on the time that i have finished myself on doing trading then i do usually pull my funds or making out some withdrawal. Yes, it is really that too hassle and that costly when it comes to fees
but we know that fees doesnt hurt that much if in exchange for the overall safety of your funds.

Actually i cant blame on into those people who are really that making those kind of doesnt care about the condition or situation that they might be able to face on because they are really that too confident into the platform that they are really that been dealing into. We've seen through this back in the past and its up to you whether you would really be still having that complete trust into them or would really be skeptical already on the things that you are dealing with.
Somehow its not really that too easy for these platforms to be taken down but well its up to you on how you would really be handling out such risks and possibilities.

You left out 2 of the biggest of at their time. Cryptsy and Mintpal which were both exit scams. Mintpal was famous among whales and cryptsy was basically main altcoin exchange at the time. These days owning your own keys was more reasonable as there were basically only few exchanges that were legit, and many of us weren't sure what those were. People hated regulations and wanted legitimacy at the same time. That's a combination that just doesn't work.

But anyway, we have come long way from there and new legit exchanges have born and i have way more trust in them to handle my cryptos then myself handling my own cold wallet keys. I lose house keys, usb sticks, important papers and such all the time so why in the name of god i would be safer storing my own privatekey. Places like kraken, bitfinex and coinbase have my full trust. Or at least i have more trust for them then i have myself.

I have however seen binance sketchy, but kucoin was is like imitation of binance, and way more sketchy. I could see kucoin going down any day and i wouldn't be surprised. Binance could go down too, but that i see way more problematic, as that would bring whole market with it. Markets crashing with FTX would be nothing next to it.

The failure of cryptocurrency exchange is a concern of every crypto enthusiast cause it will literally impact the market price which means it should be the concern of us all.
The sad thing is that this issue will continue to happen because most crypto exchange owner/teams never learn from previous exchange failures and they still choose to work on their failure part.

Why most of Exchanges FAIL ?? In my opinion why most of the Exchange fail is because of Mismanagement of their money they tend use user money to cover up their business expenses we take example of ftx that use their user money to invest in other projects using Alameda research or celsius uses big APY and APR to attract more user and ending up bleeding cash when the bear market come.

or other factor such as a hack on their system and the push from their government

Most of exchanges fail because they're businesses, there's no business that exist without risk.

Any exchanges will fail when they lack of customers, while they need to pay operational expenses.

Centralized exchanges will fail when someone hack the sites and can access their hot wallets.

Decentralized/unregulated exchanges will fail when they're asked to complying with regulations, which make them only have two choices: become CEX or shutdown.

No, it doesn't concern me mostly because I don't keep my funds in exchanges other than the capital that I used for trading and when I'm not trading, I take it out and keep it in a wallet where it's safe. It should be a concern for people who keep all their assets in an exchange platform which is a wrong thing.

Exchanges serve a different purpose, they are not wallets and they aren't supposed to be used as wallets. If one needs a place to store their assets so that they stay safe, they need to use a non-custodial wallet for that purpose instead of using an exchange platform no matter how reputable it is. Use an exchange only for trading and not for storing your coins because anything can happen at any time.

I think that these types of exchanges were violating the laws from a very long time now the thing to note is why they are accused now then why not before?
 
The answer to it is that governments now want full control over the crypto market as well so that they can impose the taxes and get a handsome amount from the traders. They were ignoring it because it was not that much of a big market until now. Crypto is the fasting growing industry and in the future it'll be more successful. People like Elon Musk are showing interest in it and it's not an ordinary thing. That's why governments are trying to put pressure on these types of exchanges.

I would say that most exchanges are actually destined to fail, they are terribly managed and that's why they do so badly, I feel like there isn't anything that could make it work better because they start with something that would make it change in the end.

I am not saying that it is going to be something that will take a while, I am just saying that we are talking about a situation that will change with time because exchanges are now built in a way that is terrible, but they are billions of dollars worth, so someone who is super rich will end up making something that is FAR FAR better than whatever we have now, even better than Binance, that will for sure will happen one day and we are going to end up with something better.

I don't think so, if that is so, we have a decentralized exchange to choose from.
Most problems of those centralized exchanges are combating regulation against SEC, if you're not wise enough for this as an exchange owner, you might suffer from failure business.  We shouldn't let our funds sleep on exchange to avoid possible risk because we don't know when they will be hunted down by the regulators.

The OP was right, we should always consider this, Not your key, not your coins.
Use the exchange to trade (buy and sell) not considering it as your wallet.

It concerns who its meant to concern. Most times i dont see anything wrong in their management. The main priority at times that these exchanges put into consideration is security. This is because that is the target of online hackers and their competitors to bring them down. Yet, i feel they are not doing a great job, this is their business there should be no excuse of failure if they really mean business.

It seems you are having a problem with exchanges. I know the transaction fees are so high in some exchanges, even internal trading fees are so high. Which has been proven that they are somewhat greedy. Meanwhile it doesn't mean that they should be facing such challenges from the government or users. Just like in the case of Binance and Kucoin.

Failure does usually getting in line when it comes to legal aspects aside from hacking incident or getting that being kicked out by the competition. If we do tend to look overall the things which makes an exchange fail on which if not getting hacked then having regulation issues or totally just that lacking demand and recognition. As an owner then there would really be several angles on which this business could fail.
So as much as you can then you would definitely be finding up ways for you to avoid that, we do know that exchange platform business is something that could bring up fortune into its owners
and this is why we do see several of them but we know that regulation has become that standard.

For users stand point of view, then failing of these platforms could happen. This is why its not really recommended that you should really be that leaving your coins into exchangers
or making it as your main wallet.

With raging fees, it can be hard to move the funds in & out of cold wallets, so it's cheaper to hold the coins in a trusted exchange. It can be risky, but those with money in Binance exchange have never lost their funds. And I think that Kucoin users are also safe.

What's happening with Kucoin founders is probably the same as what happened to CZ. He was charged, he paid the fines, and now he is free... Binance is still operating with a new "boss" and that's it. So we can assume that these two Kucoin founders will have the same destiny.

It'll only concern investors and traders that leaves their coins in exchanges, they'll be the ones to worry if their exchange fails, because experience has shown that despite how reputable an exchange is, they can still go bankrupt. One of the things that I repeatedly learnt as a newbie in this forum is "not your keys not your coins" and "keep your coins in a none custodial wallet", so it'll be irresponsible of me to go against these golden rules. We're not only worrying about external hackers in exchanges, even their CEOs engage in shady deals with investors funds.

yes it does affect investors and traders heavily and the amount of people that invests and trades and leave their coin in these exchanges are huge, we know how ftx collapse causes massive losses towards their customers.
its always good to not put an egg in the same basket, these exchange could just do something very ridiculous behind the scene that danger our money for nothing, basically some exchange seeing from history aren't just as safe as banks, its entirely different thing at least with banks everything guaranteed with the government but with exchange we all know how settlement could be so complicated seeing from the cases of ftx where people are finally getting rewarded with their money back but we are talking about money before the pump happening.

if you can diversify money across various exchange that are reputable where you can trust it, because avoiding exchange collapse is a thing too

I agree if put all eggs in the same basket isn't good, but if you say we need to diversify our coins across various exchange, that's a big no-no.

Exchange isn't a place to hold coins, treat it like a marketplace where you only use to buy and sell Bitcoin, nothing more. If you leave your coins on exchange or you stake your coins in order to earn some %APY, your coins aren't safe and you will have a risk to lost your coins.

       -    Literally speaking, when there are only a few people trading on a platform and there is only a small amount of incoming volume, an exchange will not really last long. We know that the heart of an exchange is in the traders who will buy crypto that is available on the exchange.

and when the volume that enters each of the listed coins is good, it is for sure that the exchange will survive, whether it is CeX or DeX.

Liquidity is required for an exchange to survive so when an exchange platform comes to the market it has to do a lot of potential marketing to reach people which is very costly. And this is why the new exchange platforms cannot survive long in the competitive market. And since money is kept in exchange platforms, everyone always prefers reputable platforms. Because of this new exchange platforms are not able to survive for long

When I see a new exchange that's doing cheap marketing, I just shook my head because any company that want to run a trading exchange right now more specifically the centralized ones need millions of dollars for liquidity and settlement before they can have a successful one right now because the competition is high, so high that even the existing ones are struggling with Binance and some tier 1 exchanges, you need as much more liquidity to survive the competition and also to gain trust with heavy partnerships and promotions.

That's what FTX was trying to do, look at the heavy promotion they were doing, the aim was to take down Binance, they were borrowing and but foolishly spending money any how. If they have properly make use of that exchange and not trying to outsmart customers, they will today perhaps sitting right next to Binance or even be ahead since CZ was hold by the US. Not sure what they did to CZ would be applicable to Sam Bankman Fried since he is US citizens and has many senators backing.

What I have learnt from my mentor is for us to not keep coins that we can not afford to lose on exchange because exchanges can close anytime. I read that the government are investigating many cryptocurrency exchanges for money laundry and other criminal offense and soon they will find many exchange guilty. Some exchange were already found guilty and other exchange will be found guilty too. For the exchange that does not have the backup money in their reserved to handle the withdrawal that will be coming to their exchange when they get sued by the SEC, they'll fail. Keeping our coins on exchange will make them very valuable to hackers stealing them therefore it is not a good decision to have our coins on exchange in spite of what our reason are for keeping our coins on centralized exchanges.

Thanks for this reminder, I totally agree that it's also good to leave only the coins that you can afford to loose in your exchange, in the case of short term transactions, because they can shut down at anytime. Governments all around the world, not just the US SEC are monitoring the affairs of exchanges, a top exchange like Binance is having a money laundering issues in Nigeria, and already the country has disabled the exchange's p2p in the country, who knows what other issues that Binance, might face in the future, so no exchange is totally safe from going down.

Storing assets on exchanges has never been recommended because of risks like FTX or Mt.gox have caused, but in the cryptocurrency market not everyone just buys and holds to make profit. There are many people who are making profits through staking, P2P trading, daily trading, futures...and to be able to do that, they need to leave their assets on the exchanges. And this is also the biggest drawback of DEX so far as they have not been able to develop these features.

When we invest in the market it means we accept risks and are aware of the risks we will encounter. So depending on how you earn, you will store your coins in a non-custodial wallet or an exchange.

The room for these new exchanges is quite very small which means only a few of them to survive and succeed.
Not to mention how many of new exchanges are created every day but guess what, what we just heard and what people are using are still the old ones. And I know why because people are looking for security assurance and we know that using new exchanges carries huge risk as they are still building their reputation. While old exchanges like Binance and Kucoin already had which give traders/investors the confidence that they are looking for.

Not on an exchange because if you're keeping there and you understand the risk, you're too confident with that and that's quite dangerous.
As you earn, you also need to keep yourself informed on how you should keep your money safe and away from exchanges.

This is just the reality, it's a direct reason to the course failed exchange. Just like other investment the numbers of customers matter on how the business will progress mostly once it has to do with customers that are good in buying or investing.

Exchange is best for trading but where the number of trader us very minimal it defeat the purpose of the exchange as the income to the exchange can't be enough to maintain others servicing feel and all general maintenance that may include the human resources of the exchange in regards to their payment. Typical example selling shop with low customer may definitely closed down if they lack customer and may find it deficult to pay rentage, of shop as well workers if they lack customers.

Now there are so many exchange platforms that have a good reputation in the eyes of many people that they will continue to progress if they don't face problems internally. Because most people will definitely not choose a new exchange platform to put money into it to carry out several activities such as trading and others. So the developers of the new exchange platform have to do more trials and continue to compete and carry out more promotions to introduce their new platform to more people so they can get more users.

Yeah I agree, still when we talk about competition, exchanges that are newly launched but have planned everything very well and wish to stay in the industry for a long will do everything they can to stay in the competition, they would have a budget for marketing purposes that they would use to bring users and liquidity to their platform so that other traders coming in don't face problems. They will also provide promotions and offers to individuals and projects for using their platform to have a solid base after the launch.

Platforms that aren't serious about the business and have planned only to get into the business with minimal investment so that they can earn some money will barely care about these things which is why they don't survive for very long.

Regulation is supposed to be a good thing as it can make their business more legal, therefore I don't think it's one of the reasons on why an exchange can fail. For those who do a scam, I think they are still successful there. I know it crazy but a bad customer support can only be normal and not enough to say that a platform is a scam. Binance exchange have almost failed a couple of times and I think the market is still standing strong. The same thing might be experienced even if they fail for real. It's only normal for a business to fail. The key is to not put all your trust and always be observant so that you can evacuate safely and then move to another secure one.

Some exchange giving excited offer by staking coins has bigger percentage of APY, I remember with how many people loss their fund after staking with USTC as Luna stable coins with reward 20%. Most of staker not understand well risk facing with stable coins offer above 20% and price of UST dropping drastically.
If hold coins or assets in exchange market never put in staking pool, you need requirement more than 24 hours for unstake coins with potential price dropping drastically without waiting for your coin landed to main balance. Many exchange get scam awhile and most careful when staking coins or hold it in exchange, always priority if want staking coins without requirement more than 24 hours fund return to main balance.

Exchanges fail basically due to two primary reason one is Bankruptcy as you mentioned and other one is hack that affects the users funds too, hackers always targetting the crypto exchanges and if they see any vulnerability in their security system they will drain millions in split second and after that the recovery is close to zero.

Making a name for yourself is always difficult, but I would suppose it is even harder on this market, and that is because once a trader finds an exchange they trust, it will be difficult for them to change it just because a new exchange appeared, after all most traders are using amounts of money that are significant to them, so taking the risk of using a new exchange just to see what is like, while putting themselves and their money at risk makes no sense to them at all.

If you are a trader, you are a P2P buyer and seller, how can you avoid having to use centralized exchanges and store funds on them? As I said, not all investors are holders and there are many ways to make money in this market. Each person will have a different way of making money and a different level of risk tolerance. In addition, it is true that many centralized exchanges have collapsed and caused huge losses like FTX but do you know Coinbase? They've been around since 2012 and are still around today, and what do you think?

When an exchange gets hacked, it's hard to trust them back because if they don't do anything to improve their security. The trust of their users will be lesser.

But with the popular ones like Binance, despite the hacks that has happened to them. It's just that CZ was too good in confirming the funds of users are safe.

Without him saying that, people will lose confidence on them.

Definitely ok for those who are interested in learning. No matter how difficult the task may be, if there is interest in learning, even difficult tasks can be made easy. Trading is not as easy as we see it, in trading we have to take a lot of risk and use our brain to analyze the market as well as have enough patience. If none of these are present then the chances of success in trading are very low. Every person wants to make profit by trading but not everyone's goal is fulfilled because not everyone can trade properly and not everyone can wait till the last time. I certainly welcome those who can wait and who have risk taking ability to this trading section but trading is not the right platform for those who will only trade by looking at market volatility and expect profits very easily.

Binance made the hacks to look like it doesn't affect at all and to an extent further they went ahead and forced the hacker to refund the funds by tracking immediately and blacklisting the address from every platform but it isn't case with every exchange, they will not able to get back again once their funds were drained.

Hardware wallets are the best for long term storage rather than exchanges, I always do that and never store too many valuable assets on exchanges. I just trade on the exchange and then withdraw profits and quite large capital to the main wallet. There are many exchanges that do not provide cash reserves for emergencies, this would be dangerous. should learn from the FTX incident as it was a pretty big exchange to begin with.

I just hope many people woukd be aware of the risk that is involved in using centralized exchanges especially when they keep all their assets in the exchange without splitting it so in case of anything that could happen. It is better we learn from other people's mistakes and don't do something that is going to have bigger effect on us. Keeping money on an exchange is not bad but we all need to be wise and don it appropriately. We can keep like 40% of our cryptocurrency portfolio on an exchange while the rest can be in the wallet.

Luckily, they've got the funds and reserve and that's why where the "SAFU" started. And that had gained the confidence of most of their users.

I reckon, hardware wallets are the best if we're going to store crypto and won't touch it for years than the exchanges.

You can keep some of your coins in the exchange if you have other trading activities that you need to do or avail some of the financial services like staking or savings in the exchange. But if not, it is always best to get it out of the exchange.
 
Even if the exchange is top rated or reputable, you'll never know what will happen next. Just like the examples mentioned by the OP. Who would have thought that FTX was having trouble with their business? A known company backed by a lot of investors, and yet, it failed owed to funds mismanagement of the CEO itself. It was not the first of its kind, remember Mt. Gox, and yet, many people haven't learned their lessons yet.

Obviously this is always a worry for me as a daily trader who has to deal with the market every day on the stock exchange. Especially on centralized exchanges. It's just that as long as an exchange has a clear proof of reserve that we can always monitor. then I think the worry is a little less. Especially Binance which has SAFU. Proof of Reserve also began to be implemented on every exchange after the events that occurred in the FTX bankruptcy tragedy. And after that every trusted exchange implements Proof Of Reserve. So my worries are reduced. The problem is that we must always remember that Cex is not for storing our money or our assets. it's just a trading place. After we finish trading, we must immediately move our assets back to our personal wallet.

Not so, because I only have a few assets left in the exchange and it is not withdrawn because it will only be detrimental if later intend to sell it because the cost of the network could have risen when the market is bullish.
Many exchanges have failed, because of problems from outside and also from inside the exchange, for example from inside the stock exchange, is a mistake in managing how the owner is involved in illegal actions that should not be done by the exchange owner, the increasingly fierce competition of exchanges as well as the regulations of the government make the exchange failed, but what often happens is due to management mistakes and tells the public because of hackers.

Yep, same here. I never leave my Bitcoin on exchanges, I hardly ever use them but if I do immediately it's to sell and withdraw. But of course over the years I lose lots and lots of shitcoins mainly because they're way too small to exchange due to fees and minimum withdraws.

I think tho if I calculate all my lost shitcoins on exchanges maybe its in 100s of dollars. 10 exchanges who failed and kept all my shitty coins, x 20 or 30 shitcoins lol

I bet they make money like that from thousands of users like me.

If users deposit money into an exchange and that exchange keeps the user money and don't tempered with it, how will that exchange ever fail? It's like given somebody money to hold for you and when the time is right that you need your money back, they give you exactly how you you gave them and everything settle. As for the exchange, they benefits when you want to withdraw because they charge you more than they asked you for withdrawals and also gains from fees.

The exchanges that we see collapsed most often tempered with customers money and when something goes wrong, they don't know a way out because nobody will help them out with the money, not even a fellow exchange will want to lend them because they don't have money on their own in the first place, it's all customers money and given it out will jeopardize their trust with customers as well. When exchange put greed before anything, they will likely fail.

There are many reasons why they fail and I think that some exchanges fail intentionally, it's part of their plan. Some exchanges don't invest money in security and become victims of software bugs, they don't implement good practices of how to securely store coins, and some of them store too many coins in a hot wallet and hold small reserves in a cold wallet, which is totally dumb. Some exchanges invest too much money in different cryptocurrencies, ignoring the necessity of having users' reserves stored securely. Then when the price of these coins fall, they lost too much money. Exchanges promise you that your deposit is backed by real coins but behind the scenes they manage your funds as they wish, they invest in coins to pump and dump prices to make even more money but sometimes they fail in this game and go bankrupt.

Of course this gives me a huge and serious concerns that we should be keen enough to buy specific asset without any doubts that i makes us drown with regrets in the near future. With that scenario with kucoin, it brought a huge impact to the entire market that would bring a huge fear to lots of holders on particular cryptocurrency.
However we should generalize all those active and promising trading sites, because I still believe that everything happens for a reason.
The most important thing is we should move on and make it as good lesson not to engage into something doubtful with respect to asset choice. Volatility is the main reason, we should be careful of that.

Certainly the best at the moment and I've been using it for about 5 years now. It provides good enough security for my main crypto assets to remain untouched by the internet and be a wallet that only I can use. But the most important thing is to keep the seed phrase in the safest place.

Those who entered the market with the plan of staying permanently in the exchange market but tried a lot and if after trying they disappeared from the market, it is not their failure. Rather, when an exchange gets popular and after getting popular, when the owner of that exchange embezzles all the money and declares the exchange bankrupt, we can consider that as a crime. Many exchanges have not gained popularity so they have disappeared from the market but many exchanges have struggled so much that they are currently at the top position in terms of popularity. We should be satisfied with the ones that have managed to get a good place in the market without worrying about those that have not made it into the market.

Popularity matters a lot in the crypto space but this won't assure everything that they won't fail. However, the chances of survival is quite high because traders build their confidence and stay in an exchange that gives them a better earning opportunity. Huge volume exchanges make traders agree to stay there and get the favor or earning compared to those who have low trading volume. These are the assets that most traders are looking for an exchange to use, plus the security level. Traders build confidence when the hear positive feedback making popular exchanges become more famous than others( especially new sites).

This is just normal and I'm not surprised, it's left for you to make wise choice when dealing with digital assets. Wise choice like knowing the right wallet to save a coin, aside exchange failing over and over, keeping money in an exchange is wrong and it can easily attract scammers so from my thought an exchange is not a trusted place to store  coins. Exchange which crash are mostly referred to as a scam and developers of such exchange are scammers as they build an exchange with different motives and they work accord to such aim. It's always advisable to go for trusted exchange even if scammers will come or not don't store coins on an exchange, I read similar topic in my LB and from my opinion storing coins in an exchange is just similar to saving money in an open space where everyone can see, secondly using KYC wallet  to store your coin is wrong cause it's no longer an annoymous act.

Exchanges failing have a multitude of reasons, hacks and scammers running from the background are very common while government crackdown are rare but more like the ultimate nail in the coffin.

If the trader base is good and the exchange is having a good customer support, they will continue to operate without any obstacles. People gain the faith on the exchange through long term use and their responsiveness.

To be safe, dont use the exchange wallet as place to hold your live savings and use known exchanges.

What are the definition of success for an exchange and why some of the exchanges failed? If you look at Mt. Gox, FTX and Bittrex and few other exchanges that was shut down you will see something common in them and that is mismanagement. Mt.GOX was hacked due to proper security concern, Bittrex was shut down due to regulatory concern, FTX turned into a fraud house. All this happens due to mis management of those exchanges. Crypto exchanges business is already a profitable one due to lots of sector for revenue stream. What a proper management can do in crypto binance is a prime example of that.

Doesnt matter on what are the reasons on why those exchangers had because this is how business do really works and those things that could possibly happen or simply that it is one of the many risks on which these exchange platforms would really be able to encounter or would really be able to experience on which we know that this is something that could happen without expecting for us users. This is why it is always that been recommended that you shouldnt really be putting all of your funds or money into exchange platform because shit could happen instantly and leaving up that kind of regret just because you have left all your money into the platform on which we know that it will surely be ending up on having that losing huge money.

This is why it would really be always important that you shouldnt really be storing up your money on these places. Always make use of the amount that you would really be trading.
Nothing beats out if we do speak about non custodial wallets.

Actually no if you love your privacy and you usually avoid centralization.

All these exchanges that failed are as a result of centralization and some certain crime and regulation from governments which you can never find any of such thing with decentralized system. Centralized exchanges are not as transparent as they should be, that is why governments do charge them some regulations which they mostly violate their rules and usually affect them or cause bankruptcy do any exchanges.

Take the case of KuCoin exchange as example, the charges they gave them start affecting them immediately as their native coin KCS dropped drastically within some hours.

Avoid centralized exchanges because they are not safe to hold our coins because they can go down anytime and you might not be able to withdraw your funds because you don’t have full custody over your coins.

Currently have many exchange stop operation currently with many reason from hack cases until the owner of exchange scam their member, Bittrex exchange collapse seems difference with other exchange although close operation they have give chance for their member withdrawing their assets without freeze or suddenly close the exchange operation such as FTX of Mt.Gox.
Mt.Gox is older exchange collapse after hacking cases but most of their bitcoin stolen success getting back and has rumor almost last several years ago they will refund BTC to their member account but until right now still not refunding yet. Difference cases with FTX have been collapse after scamming by the owner its self, I think its very bad cases how the bigger exchange has not trusted owner and selling their member assets in FTX exchange.

Since you were able to do all these research listing all the bankrupt exchanges that had crashed as a result of hack and other problems, you should also be able to ask yourself what these exchanges are not in existence any more. I believe you understand why they are not in existence anymore and I think it is also an opportunity for those people that are cool with keeping their funds in an exchange.
Exchange is not the best place for us to keep our funds because they could suddenly lock our account and render us useless.