Crypto is dead. Long live Blockchain! (Part 1)
2022 has been a disastrous year for Crypto. It's not just a Crypto Winter. It's a bloodbath!
2022 has been a disastrous year for Crypto. It's not just a Crypto Winter. It's a bloodbath!
The overall crypto market capitalization has crashed from $2.19 trillion to $858 billion. That’s a loss of over $1.3 trillion!
Every multi-billion project has crashed.
Scammers & hackers have looted billions. In fact, they seem to be the only ones who have profited from crypto this year!
Centralized exchanges have lost credibility.
Decentralized exchanges have not done well either. Research has shown that over 95% of tokens launched on Uniswap are scams.
All existing crypto models have failed - algorithmic stablecoins, currencies, decentralized exchanges, DAOs, DeFi protocols, NFTs, oracles, play-to-earn, and Web3 projects.
And this is across all crypto business models - inflationary, deflationary, asset-backed, and dual-token.
Almost every project is massively down from its all-time high (ATH). Some statistics:
Aave - 90%
Algorand - 93%
Apecoin - 85%
Avalanch - 91%
Bitcoin - 75%
Bitcoin Cash - 97%
BNB - 57%
Cardano - 90%
Chainlink - 86%
Dogecoin - 86%
Ether - 74%
Filecoin - 98%
Litecoin - 81%
Maker - 90%
Monero - 73%
Polkadot - 90%
Polygon - 68%
Shiba Inu - 89%
Solana - 95%
Theta - 94%
Tron - 76%
Uniswap - 87%
(Source: CoinGecko - 1 December 2022. Figures are rounded off)
Here are just some of the crazy incidents from 2022
FTX crypto exchange and over 125 related entities (including Alameda Research) have gone bust. The cost to investors - over $2 billion.
The Terra (Classic) Network had a spectacular implosion. The cost to investors - $40 billion.
Genesis crypto trading platform has gone bust. The cost to investors - $2.8 billion.
Celsius Network has gone bust. The cost to investors - over $1 billion.
Voyager crypto has gone bust. The cost to investors - over $1 billion.
BlockFi crypto has gone bust. The cost to investors - over $1 billion.
The Ronin bridge was hacked. The cost to investors - 173,600 ETH and 25.5 million USDC.
The Wormhole bridge was hacked. The cost to investors - 120,000 $WETH.
The Nomad bridge was hacked. The cost to investors - $190 million.
The Mango Markets exchange was hacked. The cost to investors - $116 million.
Is the worst over?
Not by a long shot. I expect to see disastrous news over the next few months from Ethereum, Tether, Tron, and Binance.
So, what's next?
How should the Blockchain ecosystem re-invent itself?
What token economics models will work in 2023?
Stay tuned for the next post.
Crypto is dead. Long live Blockchain! (Part 1)
When you put it like that..🤔👀👀👀
Thank you for writing the post. This is terrible. Makes one understand how risky investing in Crypto can be! Looking forward to your next blog.