Fun

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

News Feed - 2023-02-27 12:02:10

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


2022 was a year of phenomenal cryptocurrency blowouts, as several projects collapsed and many more are on life support after the entire ecosystem was shattered. The fallout from these digital currency projects has not only removed billions of dollars in value from the crypto economy, but also eroded trust. The following is a look at six high-profile cryptocurrency project implosions that took place during 2022’s crypto winter. A Look at 5 Crypto Assets That Fell From Glory Amid 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 out of the top ten coins on May 5, 2013, have basically been forgotten despite the fact that some still hold value. Coins such as freicoin (FRC), terracoin (TRC), devcoin (DVC), and mincoin (MNC) are all distant memories now. During the 2022 crypto winter, several high-profile crypto projects imploded. Below is a summary of these project failures or cryptocurrency assets that have seen their value slashed and communities decimated.


Celsius (CEL)


On Jan. 1, 2022, the crypto asset celsius (CEL) was trading for $4.26 per coin, and it was the 93rd largest cryptocurrency in terms of market capitalization at the time. CEL was essentially an exchange token, and the now-bankrupt crypto lender Celsius advertised the ERC20 token as “the backbone of the Celsius Network.” However, on June 13, 2022, the cryptocurrency lender paused all operations and halted withdrawals, and 30 days later, Celsius filed for bankruptcy protection.


Since June 13, CEL has been extremely volatile, and these days the ERC20 token trades for $0.48 per unit, which is 88.73% lower than its value on the first day of 2022. Ownership of the CEL is extremely concentrated, as more than 38% of the entire supply is locked in the bankrupt company’s wallets, and 100 CEL wallets hold 98.90% of the entire supply. Novawulf Digital Management has been revealed as the sponsor of the company’s reorganization plan. Terra (LUNA)


421 days ago on Jan. 1, 2022, terra (LUNA) was the ninth-largest cryptocurrency in terms of market value, with a market cap of $31.86 billion. On that day, LUNA was trading for $88.08 per unit, and the network’s stablecoin UST was still pegged to the U.S. dollar. Today, LUNA is ranked 55th, and LUNA tokens trade for less than one U.S. cent at $0.00016135 per unit. UST is no longer pegged to the dollar and trades for $0.028 per coin.


After the fallout, Terra rebranded and launched a new LUNA coin, while the original LUNA became LUNA Classic (LUNC). The head of Terraform Labs, the company behind the Terra blockchain ecosystem, Do Kwon, has been charged by the U.S. Securities and Exchange Commission with defrauding investors. Although most of the Terra development community moved on to LUNA 2.0, LUNC still has a small group of dedicated supporters. HUSD


HUSD is a stablecoin that depegged from the U.S. dollar on Oct. 27, 2022. It had been pegged to the greenback since Sept. 19, 2019, but now trades at $0.135 per unit. Although HUSD is no longer a stablecoin, its market valuation is still $25.64 million. However, over the past 24 hours, HUSD has only seen $11,830 in trading volume 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. Typically, less than five HUSD transactions are made daily. While HUSD’s current market value is just over $25 million, it reached a peak of over $1 billion on May 23, 2021. Voyager (VGX)


Voyager Token (VGX) is another cryptocurrency that has lost considerable value since Voyager Digital paused operations and filed for bankruptcy protection. In January 2022, a single Voyager Token was trading for $2.56, but today it’s down to $0.45. Like Celsius (CEL), VGX has been able to hold some value as some investors hope the firm’s restructuring plan could bolster the exchange token.


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. Typically, fewer than 150 VGX transactions are made on a daily basis. FTX Token (FTT)


Another exchange token, ftx token (FTT), tied to a bankrupt entity, has also significantly dropped in value since FTX collapsed during 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, FTT is valued at $1.49 per coin, and now that the entire supply has been released from the FTX token contract deployer, the crypto asset’s rank is not applicable.


Similar to CEL and VGX, there is some hope that FTT could rebound if FTX manages to restructure part of its business. For instance, after the new FTX CEO, John J. Ray III, discussed the possibility of rebooting parts of FTX, the FTT token increased significantly in value. FTT is not available on exchanges like it used to be, as some exchanges blocked deposits after millions in FTT were illicitly released from FTT’s main deployer address. FTT is also highly concentrated, with the top 100 holders owning 99.20% of the entire FTT supply. Tags in this story addresses, Bankruptcy, Blockchain, bounce back, CEL, ceo, Circulation, Concentration, crypto assets, Cryptocurrencies, deployer, deposits, do kwon, ERC20, Exchange Tokens, Fraud, FTT, ftx, HOPE, HUSD, Illicit, Investors, LUNA, Market Capitalization, Market Valuation, restructuring, SEC, Stablecoin, Stablecoins, Terra, trading, transactions, UST, VGX, voyager, Wallets


What are your thoughts on the five high-profile crypto assets that fell from grace last year? Share your insights in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Bitcoin, Ethereum Technical Analysis: BTC Falls Below $24,000 Ahead of US Consumer Sentiment Data MARKET UPDATES | 2 days ago Bitcoin, Ethereum Technical Analysis: ETH, BTC Rebound Following Fed Minutes MARKET UPDATES | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBRICS Nations ‘Coalescing Against the Dollar,’ Major Banks Predict More Fed Hikes, Bitcoin Records Large Blocks as Ordinals Gain Currency Next articleLiquid Staking Platform Lido Sees Largest Daily Stake Inflow, Receives 150,000 ETH Reportedly From Tron Founder Show comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms

News Feed

LD Capital Founder Jack Yi Gave a Keynote Address at BWB 2022 in South Korea: Opening of a New Era of Web3
LD Capital Founder Jack Yi Gave a Keynote Address at BWB 2022 in South Korea: Opening of a New Era of Web3 press release PRESS RELEASE. LD Capital was established in 2016. Its main
SD Governor Urges 20 States to Block Legislation That Bans Crypto’s Use as Money — Says ‘Its a Threat to Our Freedom’
SD Governor Urges 20 States to Block Legislation That Bans Crypto"s Use as Money — Says "Its a Threat to Our Freedom" South Dakota Governor Kristi Noem has vetoed a bill that ban
Biggest Movers: APE, XLM Move Close to 1-Month Highs
Biggest Movers: APE, XLM Move Close to 1-Month Highs Apecoin was up by over 13% on Tuesday, despite bearish sentiment remaining largely present in cryptocurrency markets. The token
Dogecoin Price To Enter Phase E After Testing Last Point Of Support, Here’s The Target
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Coinbase Wallet Adds Support for Short and ‘Human-Friendly’ Cryptocurrency Addresses
Coinbase Wallet Adds Support for Short and "Human-Friendly" Cryptocurrency Addresses One of the scariest features of transacting with cryptocurrency, for many new users, is corre
Whale Alert: $2 Million PEPE Purchase Sees 105 Billion Tokens Snapped Up
Este artículo también está disponible en español. A prominent player has dominated the limelight in the crypto circle by buying more than 105 billion PEPE tokens at a cos
David Attlee14 hours agoGemini to halt operations in the Netherlands by mid-NovemberThe company cites the inability to meet regulators’ requirements but says it intends to return to the Dutch market.2491 Total views18
PEPE Price Hits $0.000027 ATH, On-Chain Data Says These Are The People Driving It
Este artículo también está disponible en español. The PEPE price recently reached a new all-time high(ATH) of $0.00002716, becoming the first major meme cryptocurrency to
Helen Partz11 hours agoHut 8 boosts self-mined Bitcoin reserves to 9.4K amid USBTC mergerAccording to Hut 8 CEO Jaime Leverton, the newly merged mining business will have “highly diversified fiat revenue streams.”349
Amid Ethereum’s Merge, Cardano Founder Charles Hoskinson Says ADA’s Vasil Fork Is Coming Soon
Amid Ethereum"s Merge, Cardano Founder Charles Hoskinson Says ADA"s Vasil Fork Is Coming Soon Cardano founder Charles Hoskinson detailed on Friday that the Vasil hard fork is comin
Unbanked and Mastercard Team Up to Accelerate Crypto Card Adoption Within Web3 Organizations in Europe
Unbanked and Mastercard Team Up to Accelerate Crypto Card Adoption Within Web3 Organizations in Europe press release PRESS RELEASE.Today it was announced that Unbanked, the leading
Mastercard Study: African Fintech Sector Had One of the Highest Year-on-Year Growth Rates in Funding in 2021
Mastercard Study: African Fintech Sector Had One of the Highest Year-on-Year Growth Rates in Funding in 2021 In 2021, African fintech startups accounted for 61% of the $2.7 billion