Last year the crypto market was hugely affected due to market volatility and bankruptcies. Investors and crypto users faced the worst bear markets at the end of 2022 due to the sudden collapse of FTX. Before FTX, there were a string of bankruptcies including Terra and Celsius among others. The holders of large wallets, the “whales”, reduced their holdings of Bitcoin during the market turmoil.
According to a Bank for International Settlements (BIS) report, most crypto users faced losses on their Bitcoin holdings due to earlier bankruptcies and cyber attacks on the crypto market. As per the report, more than $450 billion disappeared during the market turmoil following the downfall of Terra in May 2022, and another $200 billion was lost in FTX bankruptcy in November 2022.
In May 2022, the algorithmic stablecoin TerraUSD (UST), which was supposed to keep a one-for-one peg to the US dollar, suddenly collapsed. Within a few days, the UST value plummeted from $1 to almost zero, which sent shockwaves through the market. Earlier, Do Kwon, co-founder of Terraform Labs, was accused of a Ponzi scheme that cost him billions of won. The Seoul government sued Kwon for violating the Capital Market Law and accused five more Terraform employees in the case.
Seoul investigators have been searching for Kwon for the past few months. Since July, the South Korean government has raided Kwon and some Terra employees, including Gopax, Coinone, Upbit, Bithumb, and Korbit. In Sep 2022, the court issued a warrant to arrest Kwon and the other five members involved.
Un alt mare colaps în istoria criptomonedei s-a petrecut pe 11 noiembrie, anul trecut. FTX, cândva a doua cea mai mare platformă de schimb criptografic din lume, evaluată la apogeul său la 32 de miliarde de dolari (USD), datora bani la sfârșitul anului 2022 a milioane de clienți frustrați din cauza preocupărilor sale de lichiditate și solvabilitate.
“The median investor would have lost $431 by December 2022, corresponding to almost half of their total $900 in funds invested since downloading the app. Notably, this share is even higher in several emerging market economies like Brazil, India, Pakistan, Thailand and Turkey,” the BIS report highlighted.
Earlier, US lawmakers were urged that they want new crypto guidelines to tackle the upcoming crypto crashes. Crypto analysts believe that clear regulations on stablecoins and crypto assets would help develop the crypto market in the United States.
Rostin Behnam, președintele Commodity Futures Trading Commission (CFTC), spune că sunt necesare anumite reglementări pentru a preveni pierderile uriașe pe piața cripto și pentru a menține siguranța utilizatorilor. El a spus că ar fi necesară o reglementare clară asupra activelor cripto care nu sunt valori mobiliare.
“To ensure the stability of the financial system, societies must decide on the appropriate policy response to address risks in crypto before they become systemic. They should preferably act in a globally coordinated way,” the BIS report said.
Andrew este un dezvoltator blockchain care și-a dezvoltat interesul pentru criptomonede în timpul absolvirii sale. El este un observator pasionat al detaliilor și își împărtășește pasiunea pentru scris împreună cu a fi dezvoltator. Cunoștințele sale backend despre blockchain îl ajută să ofere o perspectivă unică scrisului său
Source: https://www.thecoinrepublic.com/2023/03/01/crypto-users-adversely-affected-by-ftx-and-terra-meltdown-bis/