Since there are an average of 297,229 monthly FTX users, the South Korean government has accelerated its regulatory framework. Meanwhile, the shutdown of Binance in Singapore brought the number of Singaporean investors on the exchange to 241,675.
CoinGecko recently published a report on the countries most affected by the collapse of the international exchange FTX. As expected, most are in Asia, as US investors were using FTX.US.
However, the report ranked the top 30 countries by monthly users, not the capital that the customers in each country lost.
The Main Victims of the FTX Collapse Are Asians
However, there may be a correlation between the two factors, as the collapse of FTX affecting the largest user bases is logical.
According to CoinGecko, South Korea ranked first in terms of monthly users. With a traffic share of about 6.1%, it represents an average of 297,229 monthly users who visit FTX.com. The South Korean government is accelerating its regulatory framework, the Digital Assets Basic Law, and expects to finalize it in 2023.
The second country was Singapore, with 241,675 monthly users, equivalent to 5% of the total traffic to FTX.com. The report pointed out that many investors switched to FTX due to the shutdown of Binance in Singapore in December 2021.
The third largest Asian user base was Japan, with an average of 223,513 unique users visiting FTX.com every month. Softbank, a technology and investment conglomerate, invested USD 100 million in FTX earlier this year.
The report from CoinGecko also indicated that Asian stocks benefited from the collapse of FTX. For example, Binance gained a 7% market share while OKX rose between 1.1% and 13% overall.
The details on the bankruptcy protection filed by FTX became public knowledge over the weekend, causing further losses in the markets.
Leading Cryptocurrencies Plummet Due to the FTX Crash
During the recent Asian trading session, cryptocurrencies tumbled again. The total capitalization of the crypto market has fallen by around 3.8% to USD 838 billion, according to CoinGecko. It has thus approached its cycle low point since November 10th.
The price of Bitcoin has dropped by 2.9% to USD 16,000 over the last 24 hours. Meanwhile, the value of Ether (ETH) has plummeted by 6.9% to USD 1,137. The latter happened because the account of the hacker who stole FTX converted the looted ETH into BTC.
Cryptocurrencies are in a red sea, with many altcoins falling toward new lows amid this bearish cycle.
The collapse of FTX has affected the global crypto market, leading many of its Asian users to suffer the highest capital losses. Likewise, the trading price and market capitalization of Bitcoin and leading altcoins have fallen considerably.
Investors should research crypto assets before buying them to learn about their all-time highs, behavior, and possible future prices. That allows them to make better investment decisions and avoid losing money due to market uncertainty. It is a matter of time before seeing that the value of cryptocurrencies goes up again.
By Alexander Salazar