31 sats \ 0 replies \ @carlosfandango 25 Jun 2023 \ on: POLL: Which bankruptcy scandal was WORSE for Bitcoin adoption? bitcoin
Of the two, MtGox had the greatest impact on the early stages of Bitcoin. MtGox at one point was responsible for handling over 70% of all Bitcoin transactions I think. The 2014 hack, with hundreds of millions of dollars worth of Bitcoin stolen led to a sharp decline in the value of Bitcoin, and early users who had their funds stored on the exchange lost everything.
The fallout from MtGox led to increased scrutiny of exchanges and a renewed focus on security measures (not your keys etc). It has also had a lasting impact on public perception of Bitcoin as a secure and trustworthy asset.
FTX, on the other hand, affected large numbers of ‘new entry’ cryptocurrency users and traders (used to more conventional and regulated platforms I suspect) who were messing around with hundreds of tokens / coins and while it was unfortunate for those involved, is unlikely to have the same long-lasting effects on the industry.
MtGox damaged Bitcoin - it bounced back and lessons were learnt.
FTX damaged crypto - it will bounce back in all its ghastly forms and lessons will not be learnt.