As for the two with the largest volume, Bitcoin and Ethereum had losses of 65.1% and 68.3%, respectively. At the same time, Binance Coin lost 53.8%, Ripple 58%, and Doge Coin 58.8%. There were also cryptocurrencies with more moderate falls such as Tron with 29.3%, or Unus Sed Leo with 7%among the top twenty with the largest market capitalization.
The only two that rose in the top 100 were: Trust Wallet Token (+77.2%) and GMX (+93.9%). In the case of the first, it is a governance token that allows users to participate in the decision-making process of the wallet; the second is the native token of the DEX decentralized exchange.
The loss of stablecoin parity
One of the key events that strongly damaged the ecosystem was the cryptocrash. By May, the Terra network suffered a massive destabilization.
What happened was that he lost pegging the UST stablecoin to the dollar, and by algorithmically backing it, the native coin LUNA disintegrated by plunging nearly 100% in just 24 hours. Luna’s implosion took $40 billion off the market and generated a total loss estimated at $300 billion.
The Exchange FTX debacle
As if that were not enough, in November FTX, a cryptocurrency exchange platform, entered bankruptcy proceedings in the United States, which led to distrust in the rest of the fintechs.
Just over a month ago it became known that FTX’s partner firm, Alameda Research, had a significant portion of its assets in FTX’s native FTT token. Following this revelation, the CEO of rival exchange Binance, Changpeng Zhao, announced that Binance would sell its holdings of the token, which produced a kind of bank run with FTX clients.
Thus, the FTX exchange was unable to process the withdrawals. Binance signed a letter of intent to acquire the company but ultimately backed down, citing reports of mishandling of client funds and investigations by US agencies. FTX filed for bankruptcy.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
