Crypto-crash: The collapse of the Terra ecosystem, its original token LUNA and its stablecoin UST can be considered one of the most tragic events in the history of cryptocurrencies. Unfortunately, this is far from an isolated incident.
According to data from Coingecko, at least five cryptocurrencies considered promising have fallen more than 90% from their record highs (ie their highest prices since entering the market) in the past week.
Interestingly, some of the best digital assets by market value have also seen a steep price drop. For example, Dogecoin (DOGE) has fallen by 88% from the highest level ever, while Uniswap (UNI) and XRP (XRP) have fallen 87% each.
Crypto Crash # 1: Internet Computer (ICP)
One year ago, the Internet Computer (ICP) cryptocurrency was worth $ 700. Today it trades at $ 8.37, down 98.8%.
ICP is the original symbol of the Dfinity Foundation, a Swiss non-profit organization. It was launched in 2021 and quickly became a huge success. In less than four days, it became the eighth largest cryptocurrency in the world.
The Dfinity Foundation began development of the project in 2016. Its goal was to create a decentralized and scalable cloud-based blockchain to enable data storage and application integration.
The foundation is led by Dominic Williams, an entrepreneur with a passion for technology who has made it his mission to create a public Internet, free from the “claws” of Big Tech, that is, companies like Google, Facebook or Amazon. .
Crypto Crash # 2: Filecoin (FIL)
On April 1, 2021, Filecoin traded at $ 236.84. Currently, the asset is worth $ 8.94, down 96%.
When Filecoin was born in 2017, its creators raised a record amount under ICO. As a reminder, an ICO or “initial coin offering” is the period during which a project raises capital before launch. That with Filecoin made it possible to raise $ 257 million, far exceeding the $ 232 million that Tezos raised, which was a record at the time.
Project investors include giants such as Sequoia Capital, Andreessen Horowitz and Union Square Ventures.
In fact, the idea of Filecoin was to create a decentralized network of digital storage, thanks to which users could easily and efficiently rent the available space on their disks in exchange for FILE tokens.
Crypto Crash # 3: EOS
On April 29, 2018, EOS reached a record high of $ 22.71. Today, the token is worth $ 1.39, a loss of 93.9%.
This blockchain project was one of the first “Ethereum rivals” and managed to raise $ 4.2 billion under its ICO. After several test versions, it was officially launched in June 2018.
EOS has also won the trust of several high-caliber investors, including UK hedge fund manager Alan Howard, Moore Capital Management CEO Louis Bacon, PayPal and Palantir co-founder Peter Thiel.
Unfortunately, the enthusiasm for this project quickly disappeared. Last June, Block.one, the parent company of the EOS blockchain, agreed to pay $ 27.5 million in a class action lawsuit related to its over $ 4 billion ICO.
Crypto Crash # 4: dYdX (DYDX)
dYdX is the native token for the decentralized exchange of the same name. After hitting a record high of $ 27.86, the asset is currently hovering around $ 2.21, down 92.1%.
The fall in prices began in September 2021 and was partly due to China’s ban on crypto trading. However, trading volume on the dYdX exchange continued to rise, exceeding the $ 10 billion mark.
This increase in volume is mainly due to the Chinese government’s actions against the cryptocurrency sector. In fact, the country has been considering for some months that any person or company that allows trading in digital assets is breaking the law.
The tightening of restrictions forced several companies in the sector, including centralized exchanges still conducting over-the-counter transactions in the country, to reduce and then suspend their services to Chinese. So this group of clients started looking for alternative solutions in the market, such as dYdX.
This is because dYdX is a decentralized exchange (DEX), which means that it has no user resources. Transactions are made through smart contracts based on Ethereum. To avoid high network gas charges, dYdX uses a Layer 2 solution from StarkWare.
In April, however, the token experienced a sharp drop as Binance removed the dYdX / ETH trading pair from its platform.
Crypto Crash # 5: LooksRare (LOOKS)
LooksRare (LOOKS) is the original symbol of the NFT marketplace of the same name. On January 20, 2022, the asset reached a record high of $ 7.10. Today, it is trading at $ 0.64, down 91%.
LooksRare first saw the light of day in January, but it quickly became one of the biggest rivals to OpenSea, the leading non-fungible token (NFT) marketplace. However, several specialists have expressed their doubts about the astronomical volumes that the platform achieves.
Some believe there were laundry trade transactions. This means that users would have bought and sold NFTs between their own wallets, giving the impression that the platform was processing large volumes.
On January 31, the analytics platform CryptoSlam announced that it had discovered over $ 8.3 billion in laundry deals on LooksRare, a statement that caused LOOKS ‘price to fall.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at your own risk.