Key Insights
- Three Asian countries contributed 15.7% to FTX’s total traffic.
- FTX users increased in Singapore when Binance stopped its operation in the country.
- The countries with the biggest users will be largely affected by the collapse.
Since the FTX collapse, every industry player, including exchanges, investors, and countries, has been measuring the impact. Experts say in years to come, industry players and investors will continue to measure the impact of the collapse.
In a bid to ascertain the damage caused by the collapse amidst the crypto winter, CoinGecko, — a crypto market data platform, released the monthly average traffic and their percentage share by countries. As expected, the top three countries are spread across Asia.
Asian Countries Affected by the FTX Collapse
CoinGecko released a report detailing the biggest users of FTX.com, a crypto exchange. The report showed the number of monthly unique visitors between January and October. According to the pricing and analytics platform, three Asian countries— South Korea, Singapore, and Japan recorded the highest number of users of FTX.
Similarly, South Korea ranked highest for monthly users, with the most significant traffic share of 6.1%. The percentage represents 297,229 unique monthly users on average visiting FTX.com. In response to the collapse, the South Korean government has accelerated its regulatory framework, the Digital Asset Basic Act, which is expected to be finalized in 2023.
Furthermore, Singapore has become the country with the second-highest number of FTX users. The report showed that Singapore had about 241,675 monthly users representing 5% of the overall traffic to the exchange.
The country with the third-largest user base is Japan. Japan accounts for 223,513 unique users on a monthly average visiting the exchange.
Interestingly, SoftBank, a Japanese investment giant, invested $100 million in FTX earlier this year. Furthermore, other Asian countries that accounted for more than 25% of the users on FTX are Taiwan and India. Both countries were in the top ten categories.
One reason Singapore falls among the top three users is the pullout of Binance from Singapore. You would recall that in 2021, Binance stopped operation in Singapore— Singaporean investors thereby moved to FTX to continue their trading and investment.
The Impact of FTX Collapse on These Countries
The three Asian countries combined contributed about 15.7% of FTX’s total traffic. The implication is that the collapse would majorly impact these countries. Even though the actual size and impact of the collapse are yet unknown.
Similarly, there are no plans on how the investors who lost their investments will be compensated. Experts opined that the impact would be largely felt among Asian investors.
Furthermore, it is important to know that the United States users would have fallen among the biggest users. However, the FTX US did not collapse. The Asian citizens dominate the subsidiary of FTX that collapsed.
