2022 – Year in Review: Top 5 Crypto Stories That Rocked the Entire Crypto Market

After the ecstatic highs of the previous year, the crypto market was exposed to an atmosphere of stimulative monetary strategy, which ultimately resulted in sell-offs, the collapse of initiatives such as Terra, the insolvencies of CeFi companies such as Celsius Network and Voyager Digital, and the crescendo decline of the FTX exchange. This article is about top 5 crypto stories of 2022. Let’s look at it in more detail.

These top 5 events show that, amid the mass adoption of cryptocurrency over the past decade, it’s still the Land of the Free. Many individuals have advocated for more cryptocurrency legislation in response to the failures and insolvencies seen in 2022. Many genuinely think that proper federal oversight and legislation would prevent fraudulent activity and theft, as well as reckless lending and collateralized trading, from generating a complicated situation for investors.

Death of TerraUSD and LUNA

The Terra network and its boss, Do Kwon, became famous in the crypto market for four years, only to explode. Crypto network Luna has collapsed in what is believed to have already been a massive crypto crash, wiping out approximately $60 billion and shaking the global cryptocurrency market. This story is one of the top 5 crypto stories of 2022 that shook the entire crypto market.

Celsius network

Celsius Network was launched in 2017 and operated similar to a bank. Users would be able to transfer cryptocurrencies and earn up to 17% interest, according to the company’s website, and Celsius would lend money against those reserves. (The year before, regulators in several states had declared Celsius’ products illegal.) The business prevented its 1.7 million users from trying to withdraw or send money — estimated at $20 billion at its peak — in June 2022. The corporation filed for bankruptcy in July. According to the court filing, financial profits fell by 80% between March 30 and July 14, 2022.

Fall of the capital 3 Arrows

Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, has declared bankruptcy. This was achieved following the issuance of a court order in the British Virgin Islands after lenders vilified the hedge fund for its inability to recoup “claims from a major downturn in cryptocurrency markets. Three Arrows Capital used a bold trading strategy that would involve trying to identify favorable light collateralized holdings in multiple cryptocurrencies. The deal was also sensitive to the Terra USD stablecoin and its sister coin, Luna.

FTX and Sam Bankman-Fried

Faith in crypto markets remained stable until disturbing revelations about FTX and sister company Alameda Research emerged in November. Binance CEO Changpeng Zhao has expressed growing concern about FTX’s financial health and its ability to currently sustain its self-issued token, FTT. Traders started withdrawing money from FTX. The price of FTT dropped from around $26 to $1 in a few days and FTX stopped client withdrawals.

After pooling the customer’s funds and investments, the apparently healthy company was found to be in bankruptcy. At the end of November, FTX declared bankruptcy. BlockFi’s previous bailout was reversed, and the company was forced into bankruptcy. Cryptocurrency markets have crashed.

The fall of BlockFi