In today’s crypto industry, all the talk is about the FTX crash, but according to highly specialized analytics platform Chainalysis, the FTX failure brought fewer losses to digital currency investors than the Terra Luna crises in May and the firm’s credit Celsius and hedge. fund Three Arrows Capital in June.
The FTX exchange caused $9 billion in damage to the blockchain industry last month, and the failure of Terra caused a loss of $20.5 billion in digital assets. The collapse of Celsius and Three Arrows Capital cost crypto investors $33 billion.
“Our data suggests that the FTX drop was not the biggest concern for crypto investors this year,” the analysts wrote on the Chainalysis blog.
“Both the Terra depreciation (fixed parity loss to another asset, in this case the dollar – editor’s note) of Terra’s UST token and the Celsius crash weeks after led to much larger losses.”
And these losses once again confirm that 2022 is a difficult year for the digital asset market, which has plunged into the so-called crypto winter due to a sharp increase in interest rates and numerous high-profile bankruptcies.
Bitcoin has fallen 63% since the start of the year to around $17,000, Business Insider recalls. The smallest cryptocurrencies, Solana and Polkadot, are now trading roughly 95% below the all-time highs they hit in 2021.
The crash of Terra’s stablecoin UST and its secondary token Luna in May marked the beginning of the market downturn in the eyes of many investors.
A month later, crypto lender Celsius added to the industry’s misery when it was forced to freeze client accounts after a botched asset sale.
Last month, the FTX exchange faced a solvency crisis that led to a bankruptcy case and now also the arrest of its co-founder Sam Bankman-Freed on fraud and money laundering charges.
Author:
Ekaterina Alipova
Source: RB
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
