3 Incidents That Rocked & Shocked the Crypto Markets in 2022

Vinod Dsouza
crypto meltdown crash shock bitcoin btc
Source: Thetimes.co.uk / ILLUSTRATION; JAMES COWEN

The cryptocurrency markets had a record number of negative events that rocked and shocked investors in 2022. The negative events have piled up over the 12 months leaving investors reeling and exhausted. The markets remained on the back foot the whole year and the majority of investors are deep underwater. Even the ‘buy the dip’ gang is out of steam as investors have no money left and fear further slumps in the indices. In this article, we will highlight the top 3 most shocking events that rocked the crypto markets.

Also Read: How Many Cryptocurrencies ‘Died’ in 2022?

3 Incidents That Shocked the Crypto Markets in 2022

1. TerraUST & LUNA Crash

TerraUST and LUNA (Now LUNC) crashed to $0 in May this year plummeting 100% in the indices. The fall is the most shocking incident that rocked the crypto markets wiping the slate clean of who invested in the token. A handful of investors lost their life savings and a few committed suicides due to the dramatic fall.

Terra’s collapse remains fresh in people’s memory and it’s a wound that isn’t healed even after seven months. The fall was unlike anything investors saw at any point in their lives, and is a bitter memory that will remain for a lifetime.

Read here to know more details about how TerraUST and LUNA collapsed to $0 here.

Also Read: Will 2023 be Worse for the Crypto Markets?

2. The Fall of Crypto Lending Firms

source: coinpedia

The Terra collapse led to a domino effect of leading cryptocurrency lending firms biting the dust in 2022. Crypto lending firms such as Genesis, Celsius, Anchor, BlockFi, Alameda, and Three Arrows Capital, among others were affected by the Terra crash and lost millions and billions of dollars.

The lost money was mostly investor’s funds and users took another beating as the lending firms filed for bankruptcy. You can read more details about the fall of crypto lending firms here.

Also Read: 3 Cryptos That Lost Their ‘Hype’ in 2022

3. FTX Bankruptcy

FTX was the second biggest cryptocurrency exchange boasting millions of users worldwide. Its founder Sam Bankman-Fried was looked upon by investors as a role model but the devil was in the details. SBF indulged in financial wrongdoings from the beginning and fooled investors under the pretext of helping the crypto community.

The exchange got mired in its web of lies and its financial wrongdoings were laid bare to the public. FTX filed for bankruptcy in November 2022 and fell from grace shocking and rocking the entire crypto sphere.

Read here to know more details about how the FTX trading platform collapsed despite being a crypto behemoth.

Also Read: 3 Cryptos Below $1 That May Rally During the Next Bull Run