5 High-Profile Cryptocurrency Implosions Shake Confidence, Wiping Out Billions in Value in Crypto Winter 2022 – Market Updates
2022 was a year of phenomenal cryptocurrency breakouts as several projects collapsed and many more were kept alive after the entire ecosystem was destroyed. The fallout from these digital currency projects has not only removed billions of dollars of value from the crypto economy, but has also eroded trust. The following is a look at six high-profile cryptocurrency project implosions that took place during the 2022 crypto winter.
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A look at 5 crypto assets that have been forgotten during the crypto market downturn
History shows that there have been many failures in the cryptocurrency market economy over the years, and a great example is how eight of the top ten coins were basically forgotten on May 5th, 2013, although some still have value. Coins like Freicoin (FRC), Terracoin (TRC), Devcoin (DVC) and Mincoin (MNC) are all distant memories now. During the crypto winter of 2022, several high profile crypto projects imploded. Below is a summary of these project failures or cryptocurrency assets that have been severely devalued and communities decimated.
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On January 1, 2022, crypto asset Celsius (CEL) was trading at $4.26 per coin, and it was the 93rd largest at the time cryptocurrency in relation to the market capitalization. CEL was essentially an exchange token, and now-bankrupt crypto lender Celsius promoted the ERC20 token as “the backbone of the Celsius network.” However, on June 13, 2022, the cryptocurrency lender suspended all operations and halted withdrawals, and 30 days later, Celsius filed for bankruptcy protection.
Since June 13th, CEL has been extremely volatile and today the ERC20 token is trading at $0.48 per unit, which is 88.73% below its value on the first day of 2022. CEL ownership is extremely concentrated, with more than 38% of the total supply locked in the bankrupt company’s wallets, and 100 CEL wallets contain 98.90% of the total supply. Novawulf Digital Management was revealed as a sponsor of the company’s reorganization plan.
Earth (LUNA)
421 days ago on January 1, 2022, Terra (LUNA) was the ninth largest cryptocurrency by market value with a market cap of $31.86 billion. On that day, LUNA was trading at $88.08 per unit, and the stablecoin The network’s UST was still pegged to the US dollar. Today, LUNA is ranked 55th and LUNA tokens are trading for less than a US cent at $0.00016135 per unit. UST is no longer pegged to the dollar and trades at $0.028 per coin.
After the fallout, Terra was renamed and introduced a new LUNA coin, while the original LUNA became LUNA Classic (LUNC). The head of Terraform Labs, the company behind the TerraBlockchainEcosystem, Do Kwon, has been charged with defrauding investors by the US Securities and Exchange Commission. Although most of the Terra developer community has transitioned to LUNA 2.0, LUNC still has a small group of dedicated supporters.
HUSD
HUSD is a stablecoin that broke away from the US dollar on October 27, 2022. It has been pegged to the greenback since September 19, 2019, but is now trading at $0.135 per unit. Although HUSD is no longer a stablecoin, its market valuation is still $25.64 million. However, in the last 24 hours, HUSD only saw a trading volume of $11,830 and the token is only listed on a few exchanges.
There are still 187,817,004 HUSD coins in circulation and 9,448 unique addresses hold a HUSD coin balance. As a rule, fewer than five HUSD transactions are carried out every day. While HUSD’s current market value is just over $25 million, it peaked at over $1 billion on May 23, 2021.
Voyager (VGX)
Voyager Token (VGX) is another cryptocurrency that has declined significantly in value since Voyager Digital ceased operations and filed for bankruptcy. In January 2022, a single Voyager token traded for $2.56, but today it has fallen to $0.45. Like Celsius (CEL), VGX has been able to hold some value as some investors hope the company’s restructuring plan could boost its stock market value.
Similar to CEL, VGX is very concentrated, with 6,267 unique addresses holding VGX, but 100 holders own 98.6% of the coins in circulation. As a rule, fewer than 150 VGX transactions are carried out every day.
FTX Token (FTT)
Another exchange token, ftx token (FTT), which is tied to a bankrupt company, has also lost significant value since FTX collapsed in the first week of November 2022. On January 1, 2022, FTT was valued at $38.70 per coin and ranked as the 34th largest cryptocurrency. Today, the FTT is valued at $1.49 per coin, and now that the entire supply has been cleared by the FTX token contract provider, the crypto asset’s rank is not applicable.
Similar to CEL and VGX, there is some hope that FTT could bounce back if FTX manages to restructure some of its business. For example, after the new CEO of FTX, John J. Ray III, discussed the possibility of restarting parts of FTX, the value of the FTT token increased significantly. FTT is not available on exchanges like it used to be as some exchanges blocked deposits after millions of FTT were illegally released from FTT’s main provider address. FTT is also highly concentrated, with the top 100 holders owning 99.20% of the total FTT supply.
What do you think of the five high-profile crypto assets that fell out of favor last year? Share your insights in the comments section below.
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Source: Crypto News Deutsch
