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Top Crypto Crashes of 2022
The top crypto crashes in 2022 were Terra (LUNA), Songbird (SGB), and FTX Token (FTT).
2022 was an exciting year for the crypto industry, even though the price action for the cryptocurrency markets has been decisively bearish. Notably, it will likely be the first year in which every quarter had a bearish close for the price of Bitcoin (BTC). The ongoing bear market has made it clear that this is a crypto winter.
Several cryptocurrency projects crashed and were abandoned, leaving a devastated community behind. While Bitcoin is familiar with such crashes, some other projects have failed to recover and might never do so.
Luna is The Top Crypto Crash
The top crypto crash to occur was Luna (Terra). After UST, the algorithmic stablecoin of the Terra ecosystem depegged in May, Terra’s founder Do Kwon deployed $1.5 billion capital in order to alleviate market concerns. After this failed to return the peg, it caused a death spiral that crashed the price of both Luna and UST. Afterward, the failed token was rebranded to Luna Classic (LUNC), while a new token was created and named Terra (LUNA).
Since the massive crash (highlighted), LUNA has bounced slightly and is currently trading at $1.30. This is still 99% below its all-time high price of $119.6. Moreover, there is no support below the current price, allowing for the possibility of a collapse.
Finally, since there is no more algorithmic stablecoin backed by LUNA, there is no inherent function or purpose for the LUNA token anymore.
Songbird Falls To $0.01
The Songbird price has fallen by 98% since its $0.43 high. It is possible that the drop has occurred as a result of the extreme delay in the Flare (FLR) airdrop, which has been announced for more than two years. Since Songbird is the canary network for Flare, its failure to meet its deadlines could have caused a decrease in the SGB price. However, Flare is finally expected to complete its airdrop in January 2023. This could potentially have a positive effect on the SGB price.
The SGB price is currently trading at an all-time low of $0.01. There are no reversal signs in place.
FTT: Most Recent Crypto Crash
While it has not technically crashed to $0, the FTT price has fallen by 99% since its all-time high and is trading below $1. The crash began on Nov. 8, after rumors began to circulate that the FTX exchange is insolvent. Shortly afterward, the exchange declared bankruptcy. Sam Bankman-Fried, the exchange’s CEO is now facing legal proceedings.
Similarly to Luna, FTT is trading close to an all-time low. Furthermore, there is no further use for the token since the exchange is now bankrupt. As a result, chances for a recovery seem slim.
To conclude, three of the biggest crypto crashes in 2022 were LUNA, FTT, and SGB. While the first two digital assets seem to have slim chances of recovery, SGB may recuperate in January 2023.
For BeInCrypto’s latest crypto market analysis, click here.
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