• 2022 was a year of major cryptocurrency collapses, with billions of dollars in value lost.
• Several high-profile projects imploded during Crypto Winter 2022, eroding trust and confidence in the crypto economy.
• Among the crypto assets that crashed were Celsius (CEL), Terra (LUNA), Bitcoin Diamond (BCD), U Network (UUU), and EOS (EOS).
Crypto Winter 2022
The year 2022 saw a devastating crash in the world of cryptocurrencies, wiping out billions of dollars in value from the crypto economy and severely damaging trust in digital currencies. This was widely referred to as Crypto Winter 2022.
High-Profile Cryptocurrency Implosions
During Crypto Winter 2022, several high-profile crypto projects experienced massive implosions. These included:
- Celsius (CEL)
- Terra (LUNA)
- Bitcoin Diamond (BCD)
- U Network (UUU)
- EOS (EOS).
Impact on Value & Trust
These project failures had a huge impact on both the value and trustworthiness of the entire cryptocurrency ecosystem. CEL tokens have lost 88.73% of their value since January 1st 2022, while LUNA has dropped from being the ninth largest cryptocurrency by market capitalization to 55th place today. Ownership of CEL is highly concentrated in just 100 wallets holding 98.90% of all tokens, while over 38% are locked up within Celsius’ bankrupt company wallets.
Projects From The Past
History shows that there have been many failed projects throughout the history of cryptocurrencies; an example is eight out four top ten coins back on May 5th 2013 that are now forgotten despite still having some value left in them such as freicoin (FRC), Terracoin(TRC), Devcoin(DVC) and Mincoin(MNC).
The events that took place during Crypto Winter 2022 highlight how volatile this asset class can be and illustrates why it is essential to do your due diligence before investing in any cryptocurrency project or asset