Top Crypto Crashes of 2022

Published on:

2022 was an exciting year for the crypto industry, even though the price action for the cryptocurrency markets has been decisively bearish. Notably, it will likely be the first year in which every quarter had a bearish close for the price of Bitcoin (BTC). The ongoing bear market has made it clear that this is a crypto winter.

Several cryptocurrency projects crashed and were abandoned, leaving a devastated community behind. While Bitcoin is familiar with such crashes, some other projects have failed to recover and might never do so.

Luna is The Top Crypto Crash

The top crypto crash to occur was Luna (Terra). After UST, the algorithmic stablecoin of the Terra ecosystem depegged in May, Terra’s founder Do Kwon deployed $1.5 billion capital in order to alleviate market concerns. After this failed to return the peg, it caused a death spiral that crashed the price of both Luna and UST. Afterward, the failed token was rebranded to Luna Classic (LUNC), while a new token was created and named Terra (LUNA). 

Since the massive crash (highlighted), LUNA has bounced slightly and is currently trading at $1.30. This is still 99% below its all-time high price of $119.6. Moreover, there is no support below the current price, allowing for the possibility of a collapse. 

Finally, since there is no more algorithmic stablecoin backed by LUNA, there is no inherent function or purpose for the LUNA token anymore.

Read more:  3 Cryptos That May Continue to Dump in 2023

Related