Why most of Exchanges FAIL ?

[Sophokles]

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.

[Fatunad]

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.

[Hyphen(-)]

Does this concern you ?

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.

[Bobrox]

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.

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.

[Bushdark]

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 ?

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.