Recapitulation Of Cryptocurrency In 2022
In today’s era, very rare people don’t know about cryptocurrency. The beginning of 2022 was considered to be the year of cryptocurrency. Bitcoin was already crashing. However, major investors like El Salvador and president Nayib Bukele were highly optimistic about the largest cryptocurrency. The market capitalization has reached the price of $100,000 before 2023. By Christmas 2022, BTC was trading at a little under $17,000. It is known to all that cryptocurrency is highly volatile. People are investing their money and assets in non-fungible tokens in 2022. Other than that, Russia and Ukraine war is the cause of the major rise and fall of the cryptocurrency.
Some Incidents That Create Shockwaves
Here we are going to state some of the shocking incidents that have already teetered the crypto sector this year.
1. Fall of FTX:
Who doesn’t know Sam Bankman Fried? He was a 30-year-old billionaire as well as the founder and CEO of the FTX exchange. He was one of the greatest legends and icons in the crypto sector. Crypto lenders and platforms have failed because of the liquidity crunch caused by Terra’s collapse. After all these incidents, FTX offered bail to them.
Last month November witnessed that FTX was hit by mass withdrawals. Unfortunately, it was unable to sustain because the panicking users tried to pull the funds from the platforms. The CEO and the exchange officer came crashing down during the rival crypto exchange.
FTX withdrawals were blocked. Whereas the FTT token plunged in value, Bankman-Fried was arrested in December. It is unclear how many investors have lost their funds due to FTX’s collapse, but the BBC reported that the exchange owed its 50 biggest creditors roughly $3 billion. However, if you are using trusted brokers like thebitcoincode to purchase cryptocurrency.
2. Terra Collapse:
We all have heard about Terra Luna cryptocurrency. It rose to fame and became one of the top cryptocurrencies by market capitalization at the beginning of this year. Research states that Terras UST stablecoin is worth almost the same as 1 USD. It was also strengthened as a result.
Do Kwon, the CEO of Terraform Labs has shared ambitious plans. He bolstered the stablecoins to purchase billions of dollars of Bitcoin. In May 2022, however, following signs of instability and increased sell-offs, UST fell from its USD peg and careened towards zero. The following panic selling plunged the price down, and sister cryptocurrency LUNA – which traded at close to $120 when at its highest in April – was worth less than $1 in around a day.
This pathetic situation has destroyed billions of dollars. Other than that, the ripple effects and the liquidity shortage have caused different types of crypto lending platforms. Those platforms include celsius to halt the customer transfer. Moreover, it will be bankrupt. Hence, it helps in triggering the fact to update the factors across the sector. Other than that, it also has a great impact to invest worldwide because the prices are rising and decreasing.
If you are using a platform like a bitcoin trader, you can always grow your money regularly. The South Korean authorities were on the lookout for Do Kwon and other Terraform Lab executives in December 2022. However, people are saying that crypto founders are believed to hide in Serbia. The actual truth is not known by anyone.
3. Insider trading at Coinbase:
As cryptocurrency is volatile so you can experience many losses. Other than that, there are many crypto criminals and hackers who never got caught. However, things have changed now. In July 2022, the United States of America justice labeled the “First Ever Cryptocurrency Insider Trading Tripping Scheme ” in the publicly traded cryptocurrency exchange globally inclusive.
Ishan Wahi, who was a former Coinbase product manager, was allegedly aware of what crypto assets are. They made a list and passed the tips to his brother Nikhil Wahi and also to their friend Sameer Ramani. These three people brought the coins and sold them in the market before the price rose. They did it when the listings became public.
According to the DOJ release, Nikhil Wahi and Ramani “collectively generated realized and unrealized gains totaling at least approximately $1.5 million” under different names and with anonymous wallets. Crypto traders on Twitter noted these suspicious transactions and alerted Coinbase. Reputed trading platforms like the bitcoin revolution are always helping investors regularly.
Things don’t remain hidden for a long time. On May 16, US legal authorities caught Ishan Wahi while they were coming to India on a flight. Three of them were charged with counts of wire fraud conspiracy and wire fraud. Though Coinbase distanced itself from its ex-employee, the memorable case highlighted crypto’s serious image problem and cast doubt on the integrity of even regulated crypto exchanges.
4. Ronin Hack:
The exploding number of blockchains has built a pathway. The reason behind this is that it is connected and transports crypto assets. The important thing about it is that it becomes prone to sophisticated security exploits.
In March 2022, the Lazarus group attached the Ronin network cross-chain bridge. It is linked to North Korea. One of the largest crypto hacks on record, crypto funds worth roughly between $500 and $600 million at the time were stolen and laundered through channels such as decentralized exchanges and crypto mixers.
It was found that the Ronin network is linked somewhat to the Axie Infinity NFT base game ecosystem.
Investing money in cryptocurrency such as Bitcoins has helped several people during the worst COVID situation. Many people had lost their mode of income for two years. They had invested money in cryptocurrency and had earned lots of money.
5. Ethereum range:
One of the smart platforms to earn money is the Ethereum range. Here the users build decentralized apps. It has created new crypto tokens and here you can easily earn lots of money. Just like bitcoins, it is also one of the methods to earn money. It has code-based projects.
As we have stated earlier, Ethereum is the native platform and is considered to be the second biggest cryptocurrency. People have earned several dollars by investing here. Just like they have earned in bitcoins. Bitcoins and Ethereum are in high competition. Users have been criticized badly due to competition between these two competitors. The energy demand can suppress several countries.
In a complicated multi-year process beset by delays, Ethereum decided to change from proof-of-work to the less energy-hungry proof-of-stake method, thus ending Ether mining. This transition, called The Merge, was successfully completed on September 15, with Ethereum claiming energy consumption was slashed by 99.95%.
There is nothing to deny the fact that Ethereum is essential and a lot of money to invest in. That is why people invest money in it. The main motive of it is to get a high amount in return. However, everything depends upon fate.
Final Thoughts
To conclude, it is important to mention that cryptocurrency is shining in the future. It is expected that in the upcoming years, it will shine more. However, it has several disadvantages too.
One has to overcome all these disadvantages then one can invest money safely in cryptocurrency. Hence, it is important to state that cryptocurrency is ruling the entire world. That is why one can take risks and invest their money. Before investing you need to read all the five shocking stories mentioned above.
