Home » The five spookiest stories in crypto in 2022

The five spookiest stories in crypto in 2022

by admin

After more than 13 years of ups and downs, this year stands out as the most tumultuous. bear market in the history of cryptography. Thanks to a variety of factors, including regulatory clearances around the world and increased credibility among projects that survived the bear market, the crypto world has marked a number of milestones this year.

However, certain events in 2022 may give you goosebumps at the toughest diamond hands. Additionally, it was impressive to see crypto projects bounce back through times of uncertainty, often helping each other.

Acknowledging the spookiest events of Halloween this year, we list the scariest events that have shaken up the crypto ecosystem, impacting investors, companies, entrepreneurs, miners, and developers.

The main factors in the following list were broadly attributed to highly volatile timeframes and geopolitical uncertainty, with prices falling across all sectors.

Extended Crypto Crash: Bear Fear

2022 inherited a turbulent crypto market that slowly began to collapse in November 2021.

The bear market has robbed the cryptocurrency market of over $1 trillion and reduced the overall market cap from over $2.5 trillion to less than $1 trillion in a matter of months.

The 2022 cryptocurrency crash has robbed profits from all sub-ecosystems, including Bitcoin, and scared investors (Bitcoin), cryptocurrencies, non-fungible tokens (NFTs), decentralized finance (DeFi), and more.

The loss was felt both ways. Falling prices meant investors lost some of their savings, while businesses struggled to stay open amid massive sell-offs and underinvestment.

Horrifying Instability of Algorithmic Stablecoins

The collapse of the Terra ecosystem is widely considered to be the biggest financial catastrophe a single entity has ever witnessed in cryptocurrency, and it’s no surprise. His two in-house products at Terra Labs became unstable and lost market value almost instantly.

Early in the crash, Terra co-founder Do Kwon was spotted publicly discussing ways to help investors recoup losses. Binance CEO Changpeng Zhao announced that the LUNC token will be Reduce total token supply Improve cost performance.

Soon after, as regulatory scrutiny of Terra’s business begins to increase, Kwon decides to act undercover, with his exact whereabouts unknown.

contains a number of entities — dissatisfied investor, Korean authorities When litigation in singapore — still tracking Kwon despite comments to the contrary.

However, Kwon claims he is not “on the run” and plans to reveal the truth soon.

Similarly, stablecoin Acala USD (aUSD) lost its peg in August 2022 after an exploit in the protocol led to the mis-minting of 3.022 billion aUSD. A decision was then made to burn the tainted tokens to regain the value of the dollar. Considering the many other examples of stablecoin crashes, the US House of Representatives bill, criminalize the creation or issuance of of “intrinsically collateralized stablecoins”.

Mass layoffs and downsizing

The loss burden was also shared by former employees of some crypto companies. Prominent players such as Robinhood, Bitpanda, and OpenSea have announced massive job cuts as they survived the bear market.

Meanwhile, cryptocurrency exchanges such as FTX and Binance have shown resilience to price volatility and continued hiring to support their ongoing expansion drive.

Crypto organizations that chose to lay off their employees did so to reduce operating costs and cut their loss component.

More than 700 tech startups recently Layoff experience this year, impacting at least 93,519 employees worldwide. However, we know that the tech community, both in the crypto and non-crypto sectors, are moving to Web3.

Crypto Hacks: Humans Are Real Monsters

One of the visible problems involving cryptocurrencies, such as hacking and fraud, has grown in 2022.

A strategy widely adopted by hacked projects this year was to provide hackers with pink slips to return some of their loot. For Transit Swap, a decentralized exchange aggregator, hackers agreed to go back About 70% of the stolen $23 million in funds (approximately $16.2 million).

Some hackers have chosen to return some of the funds in exchange for immunity from prosecution, while other projects such as kyber network When Lari Fuze We have not been successful in tracking down the respective hackers to return the stolen funds.

This year also witnessed a spike in the number of successful phishing attempts in which hackers gained access to the social media accounts of celebrities. South Korean government YouTube channelPrime Minister of India Twitter account of Narendra ModiWhen PwC Venezuela Twitter account Offering fake giveaways to millions of followers.

Governments around the world consistently issue warnings against phishing attempts using fraudulent apps and websites Impersonate a prominent cryptocurrency exchange like binance.

Resurrection Expired: NFT, Web3, Metaverse

Talk of non-fungible tokens (NFTs), Web3, and the Metaverse have swept the cryptocurrency ecosystem, promising hypothetical use cases that extend into the real world. Celebrities, actors, musicians, and artists have driven adoption by using budding technology as a tool to reconnect with their fans, or simply to inflate their wealth.

The NFT hype is Officially declared dead in July 2022 When daily sales hit their lowest for the year as recently lost investors refrained from stepping into a seemingly sinking ship.

Despite plummeting stats, the NFT ecosystem is Support from some of the biggest celebritiesThese include musicians Snoop Dogg and Eminem, tennis legend Maria Sharapova, and professional fighters Conor McGregor and Floyd Mayweather.

The decline in interest in NFTs has led to a lack of investment in new projects building use cases around Web3 and the Metaverse. Arguably the Metaverse’s biggest competitor, Meta plans to put $10 billion into the project each year. However, an unclear roadmap and uncertain revenue streams are preventing the ecosystem from achieving mainstream acceptance.

Fears aside, the biggest lesson from the creepiest event at the crypto showcase is that you should do independent research before making any investment. Never invest in unverified projects or trust unknown sources. and past mistakes like sharing personal information on the web haunt you.

This Halloween, Cointelegraph wishes Pumpkin Spice and all the best.visit cointelegraph Stay up to date with the most important developments in cryptography.