Crypto Exchanges Shut Down as Traditional Finance Moves In
Two major crypto exchanges, BitMEX and BitMart, are shutting down this year. BitMEX will close on September 23 after 11 years of operation, while BitMart plans to wind down by January. This comes as other companies in the space also face financial difficulties.
Movement Labs, which developed the Movement blockchain network, and Storj, a decentralized cloud storage service provider, both filed for Chapter 11 bankruptcy protection recently. According to CoinShares co-founder, president, and CEO Jean-Marie Mognetti, this is not a collapse of the industry but rather a 'sorting' of companies that are viable and those that are not.
Mognetti notes that blockchain technology was never meant to replace traditional financial systems but rather provide new plumbing for them. He points out that Hyperliquid, one of the largest decentralized derivatives exchanges, now gets 54% of its trading volume from stocks and commodities, not crypto. This trend is reflected in other companies, such as CME Group Inc. and Cboe Global Markets, which continue to expand their crypto product lines.