Millions of investors placed their trust in Sam Bankman-Fried’s FTX crypto exchange but the platform indulged in fraudulent activities and filed for Chapter 11 bankruptcy for their wrongdoings. The fall of FTX led investors to distrust centralized exchanges. November saw an exodus of users leaving trading platforms for decentralized applications and wallets to secure their cryptos.
Decentralized wallets such as Trust Wallet, MATH, and SFP, gained the maximum from the FTX crisis as investors moved their cryptos from exchanges.
Also Read: Sam Bankman-Fried Arrested by Bahamian Authorities
How Did Crypto Exchanges Fare in November After the FTX Crisis?
Data from ICO Analytics show that crypto exchanges experienced an uptick in users in November 2022 after the FTX fallout. A cumulative web traffic to crypto exchanges spiked 8% in November, according to the data.
Exchanges such as Huobi, BitMart, UpBit, Crypto.com, and OKX, saw double-digit growth in web traffic last month. However, it can be argued that the traffic growth could be to move cryptos from the exchanges to wallets.
In October 2022, web traffic to exchanges saw a dip of 3%. Therefore, an increase of 8% in November could be the exodus of investors planning to transfer their holdings to decentralized wallets.
Also Read: US Government charges Sam Bankman-Fried with Money Laundering, Fraud
“Web traffic to crypto exchanges in November 2022. According to the data from SimilarWeb in November a cumulative web traffic to cryptocurrency exchanges has increased by 8%,” tweeted ICO Analytics.
Now that Sam Bankman-Fried is arrested and could face a trial in the United States, investors’ confidence might make a comeback. SBF was arrested in the Bahamas and could likely be extradited to the U.S. When investors begin to trust exchanges again, an influx of investment could flow in bringing revenue to trading platforms.
Also Read: Twitter Reacts to FTX Founder Sam Bankman-Fried’s Arrest
Exchanges are publishing their proof-of-reserves to gain investors’ trust and maintain transparency. The move worked quite a bit as the crypto community on Twitter lauded firms for being transparent with their finances.