This year’s crypto winter has significantly affected the broader crypto market.
Prices of leading cryptocurrencies dropped to their lowest levels in years.
Crypto exchanges like Binance & Coinbase experience massive losses this year.
Which was triggered by the collapse of the Terra Luna ecosystem and has been exacerbated by the meltdown of cryptocurrency exchange FTX.
This year's crypto winter is significantly worse than the previous two. Several top cryptocurrencies hit their lowest levels because of the crypto winter. Not just crypto, but exchanges also suffer significant losses as a result of the occurrence.
In line with this, Coinbase, a US-based cryptocurrency exchange, has suffered massive losses this year due to crypto winter and FTX exposure. Recently, the company reported a $545 million loss and a revenue drop of more than 50% in the third quarter compared to the same period last year.
In addition, Coinbase stock also suffered significant losses, with the stock price falling by more than 30% in the last month and by 80% in the last one year.
However, the exchange has undertaken numerous measures to entice users who are likely demotivated by the current situation. Experts also believe that the US-based exchange will undoubtedly survive the existing crypto winter and will skyrocket in trading volume in the future.
The surprising collapse of FTX has shaken investor confidence and prompted crypto traders to take control of their tokens, resulting in outflows on Binance and several other crypto exchanges.
However, following the event, Binance's CEO assured its users several times on Twitter and launched numerous initiatives to rebuild users' trust in the exchange.
Recently, CZ announced in a memo to its staff that the industry for digital assets is going through a "historic moment," and that Binance is in a strong financial condition and "will withstand any crypto winter."
Meanwhile, experts believe that the exchange's continuous massive outflows is a warning indication. If Binance fails to address the ongoing concerns, this year's crypto winter might be unfavorable for the exchange.
What do you think, will crypto exchanges face the burnt of the ongoing crypto winter, or will face challenges to survive in the future? Share your thoughts in the comment section below.
Read also: Binance Is Facing Massive BTC Withdrawals | $1.14 Billion Out of the Exchange Within 24 Hours
