2022 was an exciting year for the crypto industry, even though the price action for the cryptocurrency markets has been decisively bearish. Notably, it will likely be the first year in which every quarter had a bearish close for the price of Bitcoin (BTC). The ongoing bear market has made it clear that this is a crypto winter.
Several cryptocurrency projects crashed and were abandoned, leaving a devastated community behind. While Bitcoin is familiar with such crashes, some other projects have failed to recover and might never do so.
Luna is The Top Crypto Crash
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The top crypto crash to occur was Luna (Terra). After UST, the algorithmic stablecoin of the Terra ecosystem depegged in May, Terra’s founder Do Kwon deployed $1.5 billion capital in order to alleviate market concerns. After this failed to return the peg, it caused a death spiral that crashed the price of both Luna and UST. Afterward, the failed token was rebranded to Luna Classic (LUNC), while a new token was created and named Terra (LUNA).
Since the massive crash (highlighted), LUNA has bounced slightly and is currently trading at $1.30. This is still 99% below its all-time high price of $119.6. Moreover, there is no support below the current price, allowing for the possibility of a collapse.
Finally, since there is no more algorithmic stablecoin backed by LUNA, there is no inherent function or purpose for the LUNA token anymore.
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Songbird Falls To $0.01
The Songbird price has fallen by 98% since its $0.43 high. It is possible that the drop has occurred as a result of the extreme delay in the Flare (FLR) airdrop, which has been announced for more than two years. Since Songbird is the canary network for Flare, its failure to meet its deadlines could have caused a decrease in the SGB price. However, Flare is finally expected to complete its airdrop in January 2023. This could potentially have a positive effect on the SGB price.
The SGB price is currently trading at an all-time low of $0.01. There are no reversal signs in place.
While it has not technically crashed to $0, the FTT price has fallen by 99% since its all-time high and is trading below $1. The crash began on Nov. 8, after rumors began to circulate that the FTX exchange is insolvent. Shortly afterward, the exchange declared bankruptcy. Sam Bankman-Fried, the exchange’s CEO is now facing legal proceedings.
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Similarly to Luna, FTT is trading close to an all-time low. Furthermore, there is no further use for the token since the exchange is now bankrupt. As a result, chances for a recovery seem slim.
To conclude, three of the biggest crypto crashes in 2022 were LUNA, FTT, and SGB. While the first two digital assets seem to have slim chances of recovery, SGB may recuperate in January 2023.
For BeInCrypto’s latest crypto market analysis,click here.
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In May 2022, the stablecoin TerraUSD fell to US$0.10. This was supposed to be pegged to the US dollar via a complex algorithmic relationship with its support coin Luna. The loss of the peg resulted in Luna falling to almost zero, down from its high of $119.51.
THREE ARROWS CAPITAL:- The crypto hedge fund named THREE ARROWS CAPITAL (3AC) was the first main crypto firm to go bankrupt in 2022, brought down by the fall down of cryptocurrencies Luna and Terra USD in May.
Luna plunged to $0 Friday, according to data from CoinGecko, marking a stunning collapse for a cryptocurrency that at one point was worth more than $100. The demise of controversial stablecoin venture Terra has resulted in a meltdown in the crypto market, which erased billions of dollars in value in a single day.
FTX collapsed in early November 2022 after journalists reported an affiliated trading firm, Alameda Research, derived most of its value from speculative cryptocurrency tokens.
The fall of FTX was not a death blow to crypto, it was traditional financial fraud plain and simple. Crypto is alive and well and has spent the last year showing remarkable resilience and continued growth, setting the stage for an even more robust future.
In July 2022, two major crypto trading platforms, Voyager and Celsius, declared bankruptcy. In November 2022, crypto exchange FTX suffered a major liquidity crisis and filed for Chapter 11. FTX created a wave of bankruptcies throughout the industry.
How Many Crypto Coins Have Died? Over 50% of all cryptocurrencies have died. Of the over 24,000 cryptocurrencies listed on CoinGecko since 2014, 14,039 have died.
In the dynamic world of cryptocurrencies, assets with limited supplies hold a unique appeal due to their scarcity and potential for value appreciation. In this blog, we talk about the best crypto with limited supply. These include Bitcoin, Binance Coin, Cardano, Chainlink, XRP, Avalanche, and Litecoin.
Alongside Bitcoin, four altcoins - Pepe Unchained, Crypto All-Stars, Base Dawgz, and Solana - are showing potential for significant growth in 2024, driven by their unique features and strong communities. After a trying journey, Bitcoin is preparing for another surge.
FTX founder Sam Bankman-Fried, left, arrives at a federal courthouse in Manhattan on Feb. 16, 2023. Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago.
The fall in value can happen due to various reasons, such as a lack of adoption, security vulnerabilities, regulatory issues, or the asset simply going out of favor with investors. If the cryptocurrency price reaches zero, holders of that crypto lose their investment and cannot sell their tokens or coins for any value.
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