Top 10 Biggest Crypto Failures of 2022
This year has been a tough one for the crypto industry. From Bitcoin’s wild price swings to the implosion of major exchanges, it’s been a rollercoaster ride for investors and enthusiasts alike.
And while there have been some bright spots, such as the launch of Ethereum 2.0 and the rise of DeFi, there have also been plenty of failures.
In the world of cryptocurrencies, there are always winners and losers, with several high-profile failures making headlines. Here, we look at ten of the biggest crypto failures of 2022.
On March 12, 2022, the crypto industry was dealt a major blow when the prices of both Terra Luna (LUNA) and TerraUSD (UST) crashed. LUNA lost over 90 percent of its value in hours, while UST, a “stablecoin” pegged to the U.S. dollar, lost nearly 99 percent.
This event sent shockwaves through the entire cryptocurrency industry, showing that even the most well-funded and popular projects are not immune to major crashes. It also cast doubt on the stability of stablecoins, which are supposed to be the backbone of the crypto industry.
The May 2022 Crash
It is now widely accepted that the May 2022 Crypto crash was inevitable. For years, the crypto industry had been living on borrowed time, propped up by abundant liquidity that was bound to burst eventually. When it did, the consequences were dire.
The crypto industry was dealt a blow when the value of Bitcoin and other major digital assets crashed after a period of sustained growth. The leading cause of the crash was the U.S. Federal Reserve’s decision to increase interest rates. This caused a mass sell-off of crypto assets due to nervous traditional and crypto markets investors. As the crypto industry continues to grow, it attracts both investors and traders, leading to a rise in trading tools. You can now access anything from automated trading bots to all-in-one crypto trading platforms.
The sell-off was swift and brutal, with billions of dollars’ worth of value wiped out in hours.