Crypto Exchanges Face Shutdown as Retail Trading Slumps
BitMEX and BitMart are among several crypto trading platforms facing closure due to a significant slump in retail trading. The industry's reliance on retail hype is no longer sustainable, according to analysts.
BitMEX announced its permanent shutdown in September, while BitMart gave users 30 days to close trades and six months to withdraw funds after closing operations. Users are concerned about withdrawal delays following the announcement.
Jason Fernandes, co-founder of AdLunam, believes a steep fall in retail trading is the main cause for these closures. 'There isn't enough volume or retail trading anymore,' he said. 'Retail interest has dropped significantly even in Telegram groups.'
Analysts predict more exchange closures due to the decline in retail trading. Fernandes stated that only exchanges not dependent on retail trading will survive, and short-term retail trading numbers are unlikely to return to 2021 levels.