The whole point of crypto was to be decentralized. For one company to go down and cause the industry to implode means the industry is on the wrong path and needs to be reset.
Bitcoin is still the same as ever, it has survived and recovered from lots of exchange collapses after a few years.
But there are tens of millions of new people (or even more) since the MtGox collapse in 2014 who haven't learned the lesson and ,,chasing yields'' or lending against their crypto tokens / leveraging their positions (the new forms of financializing BTC, aka not holding your own keys).
I personally know somebody who lost all his BTC / ETH by lending against it and buying more when BTC price was over $50k.
A decentralized system can still die if nobody wants to use it anymore. If prices continue to fall as a result of more and more flywheels and ponzi schemes coming to light, and more and more people keep losing their shirts as a result of companies getting hacked/going backrupt/etc., then we may start seeing negative feedback loops as more and more people give up and leave.
Or it could be that the idea that it could actually work that way was just wrong. The creators of bitcoin adopted the delusions of goldbugs, tried to replicate it in a digital form. Adapting 19th century ideas about money to 21st century technology, and expected it to work.
But there are tens of millions of new people (or even more) since the MtGox collapse in 2014 who haven't learned the lesson and ,,chasing yields'' or lending against their crypto tokens / leveraging their positions (the new forms of financializing BTC, aka not holding your own keys).
I personally know somebody who lost all his BTC / ETH by lending against it and buying more when BTC price was over $50k.