5 High-Profile Cryptocurrency Implosions Shatter Trust, Wipe out Billions in Value During 2022’s Crypto Winter

2022 was a twelvemonth of phenomenal cryptocurrency blowouts, arsenic respective projects collapsed and galore much are connected beingness enactment aft the full ecosystem was shattered. The fallout from these integer currency projects has not lone removed billions of dollars successful worth from the crypto economy, but besides eroded trust. The pursuing is simply a look astatine six high-profile cryptocurrency task implosions that took spot during 2022’s crypto winter.

A Look astatine 5 Crypto Assets That Fell From Glory Amid the Crypto Market Downturn

History shows that determination person been galore failures successful the cryptocurrency marketplace system implicit the years, and a large illustration is however 8 retired of the apical 10 coins connected May 5, 2013, person fundamentally been forgotten contempt the information that immoderate inactive clasp value. Coins specified arsenic freicoin (FRC), terracoin (TRC), devcoin (DVC), and mincoin (MNC) are each distant memories now. During the 2022 crypto winter, respective high-profile crypto projects imploded. Below is simply a summary of these task failures oregon cryptocurrency assets that person seen their worth slashed and communities decimated.

Celsius (CEL)

On Jan. 1, 2022, the crypto plus celsius (CEL) was trading for $4.26 per coin, and it was the 93rd largest cryptocurrency successful presumption of marketplace capitalization astatine the time. CEL was fundamentally an speech token, and the now-bankrupt crypto lender Celsius advertised the ERC20 token arsenic “the backbone of the Celsius Network.” However, connected June 13, 2022, the cryptocurrency lender paused each operations and halted withdrawals, and 30 days later, Celsius filed for bankruptcy protection.

Since June 13, CEL has been highly volatile, and these days the ERC20 token trades for $0.48 per unit, which is 88.73% little than its worth connected the archetypal time of 2022. Ownership of the CEL is highly concentrated, arsenic much than 38% of the full proviso is locked successful the bankrupt company’s wallets, and 100 CEL wallets clasp 98.90% of the full supply. Novawulf Digital Management has been revealed arsenic the sponsor of the company’s reorganization plan.

Terra (LUNA)

421 days agone connected Jan. 1, 2022, terra (LUNA) was the ninth-largest cryptocurrency successful presumption of marketplace value, with a marketplace headdress of $31.86 billion. On that day, LUNA was trading for $88.08 per unit, and the network’s stablecoin UST was inactive pegged to the U.S. dollar. Today, LUNA is ranked 55th, and LUNA tokens commercialized for little than 1 U.S. cent astatine $0.00016135 per unit. UST is nary longer pegged to the dollar and trades for $0.028 per coin.

After the fallout, Terra rebranded and launched a caller LUNA coin, portion the archetypal LUNA became LUNA Classic (LUNC). The caput of Terraform Labs, the institution down the Terra blockchain ecosystem, Do Kwon, has been charged by the U.S. Securities and Exchange Commission with defrauding investors. Although astir of the Terra improvement assemblage moved connected to LUNA 2.0, LUNC inactive has a tiny radical of dedicated supporters.

HUSD

HUSD is simply a stablecoin that depegged from the U.S. dollar connected Oct. 27, 2022. It had been pegged to the greenback since Sept. 19, 2019, but present trades astatine $0.135 per unit. Although HUSD is nary longer a stablecoin, its marketplace valuation is inactive $25.64 million. However, implicit the past 24 hours, HUSD has lone seen $11,830 successful trading measurement and the token is lone listed connected a fewer exchanges.

There are inactive 187,817,004 HUSD coins successful circulation and 9,448 unsocial addresses clasp a HUSD coin balance. Typically, little than 5 HUSD transactions are made daily. While HUSD’s existent marketplace worth is conscionable implicit $25 million, it reached a highest of implicit $1 cardinal connected May 23, 2021.

Voyager (VGX)

Voyager Token (VGX) is different cryptocurrency that has mislaid sizeable worth since Voyager Digital paused operations and filed for bankruptcy protection. In January 2022, a azygous Voyager Token was trading for $2.56, but contiguous it’s down to $0.45. Like Celsius (CEL), VGX has been capable to clasp immoderate worth arsenic immoderate investors anticipation the firm’s restructuring plan could bolster the speech token.

Similar to CEL, VGX is precise concentrated, with 6,267 unsocial addresses holding VGX, but 100 holders ain 98.6% of the coins successful circulation. Typically, less than 150 VGX transactions are made connected a regular basis.

FTX Token (FTT)

Another speech token, ftx token (FTT), tied to a bankrupt entity, has besides importantly dropped successful worth since FTX collapsed during the archetypal week of November 2022. On January 1, 2022, FTT was valued astatine $38.70 per coin and ranked arsenic the 34th largest cryptocurrency. Today, FTT is valued astatine $1.49 per coin, and present that the full proviso has been released from the FTX token declaration deployer, the crypto asset’s fertile is not applicable.

Similar to CEL and VGX, determination is immoderate anticipation that FTT could rebound if FTX manages to restructure portion of its business. For instance, aft the caller FTX CEO, John J. Ray III, discussed the anticipation of rebooting parts of FTX, the FTT token accrued importantly successful value. FTT is not disposable connected exchanges similar it utilized to be, arsenic immoderate exchanges blocked deposits aft millions successful FTT were illicitly released from FTT’s main deployer address. FTT is besides highly concentrated, with the apical 100 holders owning 99.20% of the full FTT supply.

What are your thoughts connected the 5 high-profile crypto assets that fell from grace past year? Share your insights successful the comments conception below.

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