2022 was the year of the phenomenal cryptocurrency blowout, with many projects on life support after several collapsed and the entire ecosystem shattered. The collapse of these digital currency projects not only removed billions of dollars of value from the crypto economy, but also damaged trust. Below is a look at the collapse of six well-known cryptocurrency projects during the crypto winter of 2022.
Take a look at five crypto assets that fell from glory during the crypto market downturn
History shows that there have been many failures of the cryptocurrency market economy over the years, a good example of which is how eight of the top ten coins onMay 5, 2013
Celsius (CEL)
Celsius (CEL) {25
On January 1, 2022, the crypto asset Celsius (CEL) was trading atat $4.26 per coin. and was the 93rd largest cryptocurrency by 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 suspended all operations and stopped withdrawals, and 30 days later, Celsius filed for bankruptcy protection.
Since June 13, CEL has been extremely volatile, with ERC20 tokens recently trading at $0.48 per unit, which is 88.73% lower than their value on the first day of 2022. ownership of CEL is extremely concentrated, with over 38% of all supply, the bankrupt company s wallets, with 100 CEL wallets holding 98.90% of all supply. Novawulf Digital Management has been identified as the sponsor of the company’s reorganization plan.
Terra (LUNA)
421 days ago, on January 1, 2022, Terra (LUNA) was theninth largestcryptocurrency with a market cap of $31.86 billion. On that day, LUNA was trading at $88.08 per unit and the network’s stablecoin UST was still pegged to the US dollar. Today, LUNA sits at #55, with LUNA tokens trading at $0.00016135 per unit, less than US$1. UST is no longer pegged to the dollar, trading at $0.028 per coin.
After the fallout, Terra rebranded and launched a new LUNA coin, and the original LUNA became LUNA Classic (LUNC).Do Kwon, head of Terraform Labs, the company behind the Terra blockchain ecosystem Although most of the Terra development community has moved to LUNA 2.0, LUNC still has a small but dedicated following.
HUSD
HUSD is a stablecoin that was de-pegged from the USD on October 27, 2022. pegged to the greenback since September 19, 2019, it now trades at $0.135 per unit. HUSD is no longer a stablecoin. Although it is not, its market valuation is $25.64 million. However, in the past 24 hours, HUSD has only traded $11,830 in volume, and the token is listed on only a few exchanges.
There are currently 187,817,004 HUSD coins in circulation and 9,448 unique addresses holding HUSD coin balances. There are typically fewer than five HUSD transactions per day; the current market value of HUSD is just over $25 million, but 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 suspended operations and filed for bankruptcy protection; in January 2022, one Voyager Token was trading at $2.56; today it is down to $0.45 The price has dropped to $0.45 today. Like Celsius (CEL), VGX has managed to hold some value as some investors hope the company’s turnaround plan will strengthen the exchange token.
Like CEL, VGX is highly concentrated, with 6,267 unique addresses holding VGX, but 100 holders own 98.6% of the coins in circulation. Typically, less than 150 VGX transactions take place per day.
FTX Tokens (FTT)
Another exchange token tied to the bankrupt entity, the ftx token (FTT), has also declined significantly in value since FTX collapsed the first week of November 2022; on January 1, 2022, FTT was valued at$38.70 per coinand ranked as the 34th largest crypto currency, ranking it 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 rank does not apply.
As with CEL and VGX, there is hope that FTT could rebound if FTX succeeds in restructuring parts of its business. For example, FTT tokens rose in value significantly after FTX’s new CEO, John J. Ray III, discussed the possibility of restarting parts of FTX, after millions of FTTs were illegally released from FTT’s primary deploy address, and after some exchanges blocked deposits. FTTs are not available on exchanges as they once were. Also, FTTs are highly concentrated, with the top 100 holders owning% of the shares; they own 99.20%of the total FTT supply; the top 100 holders own
% of the total FTT supply; and the top 100 holders own
% of the total FTT supply.
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