Crypto Winter: Five High-Profile Implosions Wipe Out Billions in Value

  • High-Profile Cryptocurrency Implosions: During 2022’s Crypto Winter, several high-profile crypto projects imploded, wiping out billions of dollars in value and eroding trust. Six of these projects are highlighted below.
  • Crypto Market Downturn: History shows that there have been many failures in the cryptocurrency market economy over the years, and the 2022 crypto winter is no exception.
  • A Summary of Project Failures: This article provides a summary of five crypto assets that saw their value slashed and communities decimated during this period.

High-Profile Cryptocurrency Implosions Shatter Trust, Wipe Out Billions in Value During 2022’s Crypto Winter

2022 was a year of phenomenal cryptocurrency blowouts, as several projects collapsed and many more are on life support after the entire ecosystem was shattered. The fallout from these digital currency projects has not only removed billions of dollars in value from the crypto economy, but also eroded trust. The following is a look at six high-profile cryptocurrency project implosions that took place during 2022’s crypto winter.

A Look at 5 Crypto Assets That Fell From Glory Amid the Crypto Market Downturn

History shows that there have been many failures in the cryptocurrency market economy over the years, and a great example is how eight out of the top ten coins on May 5, 2013, have basically been forgotten despite the fact that some still hold value. Coins such as freicoin (FRC), terracoin (TRC), devcoin (DVC), and mincoin (MNC) are all distant memories now. During the 2022 crypto winter, several high-profile crypto projects imploded. Below is a summary of these project failures or cryptocurrency assets that have seen their value slashed and communities decimated.

Celsius (CEL)

On Jan. 1, 2022, the crypto asset celsius (CEL) was trading for $4.26 per coin, and it was the 93rd largest cryptocurrency in terms of market capitalization at the time. CEL was essentially an exchange token, and Celsius advertised it as „the backbone of the Celsius Network.“ However, on June 13th 2022 Celsius paused all operations and halted withdrawals before filing for bankruptcy protection 30 days later. Since June 13th CEL has been extremely volatile; it currently trades for $0.48 per unit – 88% lower than its initial value on January 1st 202022 . Ownership of CEL is extremely concentrated with more than 38% held by wallets belonging to defunct Celsius; 100 CEL wallets hold 98%+ percent of total supply – Novawulf Digital Management being revealed as sponsor behind reorganization plan .

Terra (LUNA)

421 days ago on Jan 1st 202022 , terra (LUNA) was 9th largest crytocurency with market cap worth 31 billion USD ($88 per LUNA). Today LUNA sits 55th ranked cryptocurency with LUNA tokens trading less than one US cent ($0.01). Stablecoin UST which used to be pegged against USD lost its peg due to failed rebranding effort .

Other Failed Projects

Other failed projects include Harmony(ONE), Fantom(FTM), Serum(SRM) & Reef Finance(REEF). All mentioned project had significant drop in price since start 2021 & none could recover completely yet .