The recent bankruptcy of crypto lender BlockFills is reviving painful memories for the crypto industry. A growing number of insolvencies in recent months increases the risk of a broader contagion across a market that is still recovering from the latest sharp correction. Are the next dominoes already lining up for another black swan event?

Crypto markets have been around for more than a decade and have seen many ups and downs. The most important thing that traders should observe in these volatile markets with few regulations and watchdogs is the prevalence of bankruptcy. 

We have seen many bankruptcy cases in the past, and the trend has usually occurred during and early in bear market cycles. The key question this time is whether only…