The following is a guest contribution from intergovernmental blockchain expert and investor Anndy Lian.
There have been many developments in the cryptocurrency space over the years, including the launch of new cryptocurrencies, the emergence of decentralized finance (DeFi) platforms, and the increasing mainstream adoption of cryptocurrency.
By now, you would agree that the cryptocurrency market is highly volatile and unpredictable, and prices are not uncommon to fluctuate significantly. Apart from that, many unfortunate events happened in 2022.
Recap of 10 major crypto events that happened in 2022:
1. The LUNA Empire Collapses
$84 million leveraged a $40 billion financial empire when UST collapsed. The collapse started when UST de-pegging and the market’s extreme panic caused massive withdrawal. The collapse of one of the world’s largest public chains, Terra, fell with it, and it took only two daysThe beginning of the historical decline of cryptocurrency start right then.
“If LUNA fails, it will be the failure of cryptocurrency.” This was the headline we saw in the mainstream media during that period. The downfall process is familiar to many financial folks, similar to the Asian Financial Crisis in 1997 and Lehman Brothers in 2007.
2. Top Hedge Fund, Three Arrows Capital, Goes Bankrupt
This is still an ongoing series. Right after LUNA’s collapse, all eyes were on Three Arrows Capital (3AC). 3AC has borrowed from almost every major lender, from BlockFi, and Genesis to Celsius. The fall of 3AC can be traced to the collapse in May of UST.
They have told Wall Street Journal that it has invested $200m in LUNA. Three Arrows’ liquidators have recovered some assets belonging to creditors, including $35 million and several different cryptocurrency tokens, liquidator Russell Crumpler said in court.
3. Crypto Lehman Brothers Moment: FTX Insolvency Hits Markets
A disaster with no survivors is how I described this incident. SBF and FTX have reached almost every corner of the industry in three years, and their demise almost uprooted the whole industry. It all began when…