Some of the top crypto crashes in 2022 include Terra (LUNA), Songbird (SGB), and FTX Token (FTT).
2022 has been an exciting year for the crypto industry, although price action has clearly been subdued. So this will probably be the first year during which Bitcoin will record a down close for every quarter. Thus, the ongoing bear market clearly tells us that we are in a crypto winter.
Several crypto projects have collapsed and been abandoned, leaving behind a devastated community. And while Bitcoin is notorious for this kind of crash, other projects have failed to recover and may never do so.
Luna, the leading crypto crash
Luna (Terra) was the biggest cryptocurrency crash ever. In May, after the collapse of UST, the algorithmic stablecoin of the Terra ecosystem, its founder Do Kwon decided 1.5 billion dollars capital to ease market concerns. This operation did not restore parity to the stablecoin and created a “death spiral” situation, which caused the prices of Luna and UST to fall. Then the dropped sign was renamed Luna Classic (MONDAY), while a new token was created and named Terra (LUNA).
Since its massive crash (highlighted below in gray), the LUNA crypto price has recovered a bit and is currently trading at $1.30. That said, it still sits 99% below its all-time high of $119.6. Moreover, there is no support below the current price; so it is not immune to another collapse.
Finally, since there is no longer an algorithmic stablecoin supported by LUNA, it no longer has an inherent function or purpose.
Songbird Crypto drops to $0.01
The price of crypto Songbird down 98% from a high of $0.43. It is possible that this decrease is due to the extreme delay of throwing air ignition arguments (FLR), was announced more than two years ago.
Indeed, knowing that Songbird is canary net of Flare (a type of testnet), this inability to meet its deadlines could have caused a drop in the price of SGB. However, Flare eventually has to figure his out throwing air in January 2023. This could potentially have a positive effect on the price of GBS.
The SGB crypto price is currently at its all-time low of $0.01. There are no signs of a price change.
FTT i FTX, the newest crypto crash
Although it has not technically fallen to $0, the price of the crypto FTT it has fallen 99% from its all-time high and is now trading below $1.
Its decline began on November 8, when rumors of its bankruptcy began to circulate FTX Crypto Exchange. Immediately after that, the latter declared bankruptcy. Sam Bankman-FriedIts CEO is now facing legal action.
As with Luna, FTT is trading near all-time lows. Furthermore, knowing that the exchange is bankrupt, the token is no longer useful. His chances of recovery seem slim.
To conclude, the top three crypto crashes of 2023 are LUNA, FTT and SGB. Finally, while the first two assets seem unlikely to recover, the SGB crypto price may rise again in January 2023.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at his own risk.