The Terra and FTX bankruptcies were the main developments that drove the cryptocurrency market to $750 billion. Three Arrows Capital (3AC), Voyager, Celsius (CEL) and other firms went bankrupt following the crisis. The altcoins that saw zero in weeks are as follows…
Altcoins seeing zero prices in 2022
The biggest crypto bankruptcy of the year was Terra. UST, the algorithmic stablecoin of the Terra ecosystem, lost its dollar peg in May. Following the UST, Terra founder Do Kwon deployed $1.5 billion in capital to ease market concerns. After his move failed, both LUNA and UST became the road to a death spiral. Later, LUNA was rebuilt as Luna Classic (LUNC). It tried to make its way as a new token on Terra (LUNA).
Since the crash, the original LUNA that crashed has risen slightly. It is currently trading around $1.30. Still, the ATH price is still 99% below $119.6. It also fails to find any support in the current price zone. This raises the possibility of a collapse. Finally, as there are no more algorithmic stablecoins backed by LUNA, LUNA no longer has a natural function or purpose.
Songbird (SGB): Delayed airdrop event
Around the same time, a Flare Blockchain product called Songbird (SGB) also multiplied its zeros. SGB price is down 98% from its peak of $0.43. The drop is likely due to excessive delay in the Flare (FLR) airdrop that has been announced for over two years. As Songbird is the canary network for Flare, its inability to meet deadlines was the reason why the SGB price dropped. However, Flare is expected to finally complete its airdrop in January 2023. This is potentially expected to be positive on the SGB price.
FTX Token (FTT): Stock market crash
While not technically zero, the FTT price has dropped 99% since its all-time high. It is currently trading for under $1. The collapse began on November 8, after rumors began to circulate that the FTX exchange had gone bankrupt. Shortly after, the stock market declared bankruptcy. The exchange’s CEO, Sam Bankman-Fried, is now facing legal action.
Similar to Luna, FTT is trading close to its all-time low. Also, the token has no other use as the exchange is now bankrupt. As a result, the chances of recovery seem slim.
As a result, three of the biggest crypto crashes in 2022 were LUNA, FTT, and SGB. While the first two cryptocurrencies’ chances of recovery seem slim, SGB may recover in January 2023.
Meanwhile, former FTX CEO SBF was released on $250 million bail after being caught in December. cryptocoin.comWe have included the latest images in this article.