- China still ranks among the top 10 for crypto transactions, despite its official ban in late 2021.
- 2022 is the winter season for the cryptocurrency market.
The cryptocurrency market plummeted in real time along with the World’s economy. Although many sequential backlashes led to this downfall, this article focuses on a few that caused massive disruption.
2022 is a year of crypto adoption and unanticipated mass crypto tax regulations. Countries like Australia, Canada, Denmark, France, Germany, India, Ireland, and many others have partaken in this exercise of mass regulation. Although this could be uncongenial for traders and investors, it encourages mass adoption in upcoming years.
2022, A Year of Turbulence for Cryptocurrency
The outset of the Russo-Ukrainian friction in late 2021, bought-forth a war rattling the global economy including Oil-exchange and Stock-exchange. In addition to this, China officially banned crypto trading and exchanges in September 2021. Even though China’s hostile scenario is not new for the crypto community, its subsequent regulations in 2013, 2017, 2019, and 2020 indeed roughed up the 2022 market.
Following this, Luna crashed big-time due to its Terra USD de-pegging, pulling down almost every algorithmic stablecoin with its debacle. Do Kwon, the Co-founder, and CEO of Terraform Labs during the disaster was solely behind this felonious downfall.
Celsius and FTX
Celsius, a cryptocurrency lending company filed for Bankruptcy after they illicitly mishandled users’ funds by investing them in high-risk platforms expecting a huge ROI. This backfired on the organization, ending up laying off 20% of its workforce after which the organization filed for bankruptcy.
The FTX, a defunct CEX, and the second-largest cryptocurrency exchange filed for bankruptcy later this year. This is due to Alameda Research, their sister company that allegedly accessed the User’s funds of FTX. Sam Bankman-Fried (SBF) filed for chapter 11 before which he paid $12 million as a retainer to his lawyers.
Ripple (XRP)’s faced litigations against the allegations put forth by the SEC (Security and Exchange Commission), and this perpetual battle is anticipated to extend until Q1 of 2023.
Can we expect a break in the blockchain cloud?
The Global market cap for crypto at the time of articulating this is $810.36 Billion which is a bitter scene for a $3 Trillion industry (its ATH in late 2021). In addition to this, the Global NFT marketplace has incurred more than a 90% breakdown this 2022. But to put it in retrospect, these winters (elongated bearish market condition) are absolutely vital for the web3 ecosystem as it eliminates unstable projects.
Despite, all these odds, there are more than 5000 cryptocurrencies that arrived on the market this year. Furthermore, bear markets unveil the value of money that was lost to greed and acquaints alternative platforms for a stable ROI (Return On Investment). The Crypto exchanges encourage users to stake their assets in Defi and Cefi for better APY (Annual Percentage Yield) providing a range between 10% to 110% APY.
Takeaways
To conclude, the Whales (huge investors) consider this correction phase in the 2022 market as an accumulation period. There are many good-performing cryptocurrency projects that have partnered with multiple big corps amidst these fallouts.
Even though, the community is puzzled by “what happened to crypto this 2022?” This is a great time for the web3 community to “build, iterate, build” perfect their roadmaps and products and be ready to embrace the next transition.
Disclaimer
This article is solely for informational and educational purposes. All the articles here on TheNewsCrypto articulated here are based on the Writers’ opinions and do not constitute any financial advice.
