Three Asian countries have been singled out for being hit the most by FTX’s unfortunate collapse.
Crypto market data analytics firm CoinGecko has just published a report on the impact of the FTX collapse. According to the report, the users mostly affected by the fallout are Asians, hailing mostly from South Korea, Singapore, and Japan, in that order.
Why Asians Are Worst Hit by FTX Collapse
CoinGecko places Asians as the worst hit by the eventual collapse of the FTX exchange. But that report does not exactly come as a surprise. The reason for that is that the US-based investors do not make use of the international exchange that has now gone down. Rather, they use FTX.US for their trading activities.
In its explanation though, CoinGecko noted that South Korea ranked highest in terms of the number of monthly users. That is about 297,229 unique monthly users on average visiting FTX.com. Meanwhile, CoinGecko believes that the renewed interest of the Korean government in crypto regulation may have been responsible for the high number of users.
Coming in second on the list is Singapore with 241,675 monthly users on FTX, according to the report. But even this may be linked to the closure of Binance in the region back in December 2021. That undoubtedly may have caused investors to migrate to FTX.
Lastly, CoinGecko claims that Japan was the third most impacted country, considering its 223,513 monthly users.
It is worth mentioning that, to a large extent, CoinGecko’s report may be incorrect. This is considering the fact that it has only compared the countries, based on their number of monthly FTX users. Whereas, it may have determined a more accurate result by considering the amount lost by individual users of the platform.
But whether the report is misleading or not, the fact remains that crypto markets have continued to tank further. Especially since the details of the FTX bankruptcy filings were revealed over the weekend. That, and the recently reported FTX fund theft that saw an attacker making away with thousands of funds in ETH.