Crypto winter causes Australian exchanges to freeze operations
Crypto winter is known to be a popular phrase in the realm of crypto. It refers to a sudden price drop and then a price stagnation for a long time. The last crypto winter began in 2018. It ran for almost 18 months. The total cryptocurrency market cap fell by over 80%. The present downturn is never that bad now. Yet since it hit the US $3 trillion last November, the cryptocurrency market cap has reduced to US $1.2 trillion. A lot of this decline followed the drop in worldwide stock markets.
It reeled from the COVID aftermath, the Ukraine war, and worldwide inflation. It is disconcerting to many experts as crypto was seen previously as a class of asset uncorrelated to stocks. The crypto drop is deeper compared to stocks.
It got exacerbated by a collapse last month of the stablecoin Terra and its sister coin LUNAClassic. Yet for such a record, was the ascent to the peak after the Covid pullback of 2021 in crypto and stocks. If you are interested in bitcoin trading, go to https://cryptotraderapp.com/ for a complete guide to cryptocurrency trading.
BTC.com.au is an Australian cryptocurrency exchange. It declared its closure on 17th June. The crypto exchange said that under present market conditions it is impossible to carry on operations. Nevertheless, you can still find some best crypto exchange australia that continues their operation.
The implosion of the Terra Luna at the start of May set off many events. It rocked the industry of crypto. Several things came to light such as the user funds’ misuse will never give regulators any open mandate of implementing strict measures. Such domino impact spread to different platforms. It revealed vulnerabilities throughout the industry of crypto.
Recently, cryptocurrency platforms froze withdrawals for remaining liquid. It claims that significant players such as Three Arrows Capital are mainly in default and many exchanges declared staff cuts. With the ease of chaos, every above factor will place downward pressure upon token prices. Also against the worldwide economic slowdown’s backdrop, there is a bleak outlook.
What happened to some Australian crypto exchanges?
Under such conditions, some smaller players such as BTC.com.au got hit the most. The crypto exchange bid goodbye. It was launched in the year 2018. It was for providing users of Australia with secure and safe cryptocurrency trading. They began with the vision that cryptos must be accessible easily, it must be available to all.
Now the platform grew into a completely featured crypto trading platform. Many Australians used it though the crypto exchange is small. All details of such trading activities are never listed on any data aggregators such as CoinMarketCap. Yet 13 tokens are only available as is AUD on and off ramping and OTC trading. It announced the closure and said it expanded its team five times in the last year.
It added many new services and features in anticipation of more growth in the number of users. Yet the fall in the market hit the exchange hard and forced its closure. It marked the end of every trading or deposit operation. Yet very importantly, withdrawals of unrestricted users are open. Till 22nd July they will be keeping this platform alive. It will be to provide all-time for closing their accounts. And make sure all downloaded the reports of their trading activities for purposes of tax.
Another Australian crypto exchange CoinSpot which operated for nearly a decade said it will not pause withdrawals or plan to lay off staff. It is believed that the crypto space in Australia will continue to grow for a long. The present bear run has been a fluctuation. Newer platforms are popping up.
But investors are losing control of funds, mainly during uncertain times. This exchange has been the most certified and audited crypto platform in the market in Australia. The current fluctuations never disrupted how their products operate. Thus they did not halt withdrawals on the platform.
There is no plan to do it too. It is difficult to predict what is there next for cryptocurrency. Increased adoption by some retail investors and institutional investors and support from different enterprises will be supporting the push of crypto into the mainstream.
Such alignment from the main jurisdiction in some areas will be expediting the protection of consumers and frame perfect practices that they can build upon. It will be a great crossroads for the worldwide industry.