Cryptocurrency markets experienced numerous negative events in 2022 that shook and shocked investors. This process caused investors to get tired and distrust the market. Moreover, most of the investors are currently at a loss. In this article, we will cover the top 3 most shocking events that shook the crypto markets.
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TerraUST & LUNA Collapse
TerraUST and LUNA (now LUNC) fell 100% to $0 in May of this year. The drop was the most shocking event to shake the cryptocurrency markets. A handful of investors lost their large savings due to the dramatic decline.
Terra’s collapse is still fresh in people’s memories, and its effects continue even after seven months.
2. The Collapse of Crypto Lending Firms
Terra’s collapse led to a domino effect for cryptocurrency lending companies arriving in 2022. Companies like Genesis, Celsius, Anchor, BlockFi, Alameda and Three Arrows Capital were affected by the Terra crash and lost millions of dollars.
The money lost was mostly investors’ funds, and users were shaken once again as lenders filed for bankruptcy.
3. FTX Bankruptcy
FTX was the second largest cryptocurrency exchange with millions of users worldwide. Its founder, Sam Bankman-Fried, was seen as a role model by investors, but it turned out not all was as it seemed.
From the very beginning, SBF tolerated financial crimes and deceived investors under the pretext of helping the crypto community. The stock market was enmeshed in a web of lies and financial problems were made public. FTX filed for bankruptcy in November 2022 and fell out of favor, which shook the entire crypto industry.
What was the most shocking event that remained in your mind as you approached the end of 2022? You can share it with us in the comments!
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.