The Biggest Crises in Cryptocurrency History

Cryptocurrency enthusiasts are now accustomed to such crises, especially Mt. Gox attack, FTX crash and THODEX scandal There have been a number of important crises.

Here are the top 10 of these crises and Effects on cryptocurrency prices:

1. Mt. Millions of dollars worth of Bitcoin were stolen in the Gox attack.

In 2014, what was once the world’s largest Bitcoin exchange Mt. gox suddenly closed and filed for bankruptcy. The reason for this sudden closure was the theft of approximately 850,000 Bitcoins. This amount of Bitcoin It was worth approximately $450 million at the time.

This crisis caused the price of Bitcoin to plummet in just weeks. From $800 to $200 caused it to fall.

2. Bitcoin’s name was damaged by the closure of Silk Road.

Online marketplace for selling illegal goods and services in 2013 Silk Road was shut down by the FBI. This caused the Bitcoin price to drop from $140 to $110.

Compared to other crises, this event caused Bitcoin for illegal activities He emphasized that it is an easily used currency.

3. With the burst of the ICO bubble in 2017, a feeling of panic emerged among investors.

During the ICO craze of 2017, thousands of new cryptocurrencies entered the market. Many of these were fraud-based projects. When the ICO bubble burst, Bitcoin price It dropped from 20 thousand dollars to 6 thousand dollars.

At the same time, affecting the market Prices of ICO tokens are falling rapidly It created panic among investors.

4. Floods in China brought Bitcoin mining to a halt.

Due to floods that affected six cities in China on June 26 and 27, 2018 More than 91,000 people were affected. This natural disaster severely affected the cryptocurrency market.

China was a leader in cryptocurrency mining at the time, and floods damaged mining equipment. This caused the Bitcoin mining speed to drop sharply. In fact, the Bitcoin network is almost has come to the point of closure.

Bitcoin mining speed; It refers to the speed at which the Bitcoin network verifies and secures transactions. This event; Bitcoin, decentralized It cast a shadow over the view that it was a currency.

5. Many investors suffered major financial blows in the Bitconnect collapse.

In January 2018, it was revealed that Bitconnect, which was seen as a platform with great potential at the time, was actually a It turned out to be a fraud.

Bitconnect was a cryptocurrency lending and trading platform that operated with the promise of offering high returns to investors. When it turned out to be a Ponzi scam, the platform’s own token, BCC, was forfeited in just a few hours. It dropped from $400 to a few dollars.

This crisis in the cryptocurrency industry Regulatory efforts against fraud made it increase.

6. COVID-19, which affects the economy in general, did not ignore Bitcoin and other cryptocurrencies.

Due to global uncertainties, investors turned to traditional assets such as gold in search of safe havens, which pushed the price of Bitcoin. He reduced it from 9 thousand dollars to 4 thousand dollars. This rapid decline dealt a major blow to the perception of Bitcoin as digital gold.

7. China, the heart of cryptocurrency mining, banned mining in 2021.

This move caused the price of Bitcoin to It caused it to decline from $40,000 to $30,000. This attitude of the Chinese government raises concerns among investors that cryptocurrencies are unreliable. strengthened the perception that

8. With the performance of the Chinese real estate giant, the Bitcoin price almost did the opposite of what was expected.

A real estate crisis broke out in 2021, associated with Chinese real estate giant Evergrande. This event, triggered global economic uncertainty.

At the beginning of the crisis, Bitcoin’s price rose above $50,000, but It then quickly fell to $40,000.

9. Millions of investors lost their investments when FTX crashed.

In 2022, FTXwhile it was considered one of the best and most reliable cryptocurrency exchanges at the time. It went bankrupt in just a few days.

Uncertainties in the process leading to the bankruptcy of the stock market, Last saw Bitcoin more than a year ago He reduced it to $25,000. Behind this decline were allegations that the stock exchange was experiencing financial difficulties and sold its cryptocurrency investments.

But in reality, the stock market was in dire straits, leading up to its bankruptcy. He used users’ cryptocurrencies. With the emergence of these facts, the entire cryptocurrency market entered a new period of decline.

10. More than 400 thousand Turkish investors were affected by the THODEX scandal.

2021 and THODEX, which was previously considered a reliable Turkish cryptocurrency exchange platform, was suddenly closed in April of the same year. As a result of this incident, users accessing this platform containing over $2 billion in crypto assets More than 400 thousand users were victimized.

The founder of the stock exchange, Faruk Fatih Özer, disappeared mysteriously. However, in April 2023, Özer was caught and He was sentenced to 11,196 years, 10 months and 15 days in prison. His brothers were also fined 135 million Turkish liras.

This scandal, especially against cryptocurrencies in Turkey the need for stricter legal regulations and emphasized the need for investors to be protected by the government.

Despite all these crises, Bitcoin has proven itself to be a very durable asset so far and generally gained value again after a certain period of time after these crises. Recently, Bitcoin has become more accepted and recognized as a legal asset.

The history of cryptocurrencies is full of crises, major developments, sharp rises and declines. However Such events test crypto assets. Therefore, there is potential for digital assets to become more widely accepted both in Turkey and around the world in the future.