The top crypto crashes in 2022 were Terra (LUNA), Songbird (SGB), and FTX Token (FTT).
2022 has been a challenging year for the crypto industry, with a bearish market and several projects crashing and being abandoned. Luna (Terra), Songbird (SGB), and FTX Token (FTT) were among the top crypto crashes of the year, causing devastation for their respective communities and investors. It is important for crypto investors to carefully research and evaluate the risks and potential of any project before investing.
Luna is The Top Crypto Crash
Luna, also known as Terra, experienced the top crypto crash of 2022. In May, the algorithmic stablecoin of the Terra ecosystem, UST, depegged, causing Terra’s founder Do Kwon to deploy $1.5 billion in an attempt to alleviate market concerns. This effort failed to return the peg, leading to a death spiral that crashed the prices of both Luna and UST. The failed token was later rebranded to Luna Classic (LUNC), while a new token was created and named Terra (LUNA).
Since the crash, LUNA has rebounded slightly and is currently trading at $1.30, but is still 99% below its all-time high of $119.6. There is no support below the current price, leaving the possibility of a collapse. Additionally, with no algorithmic stablecoin backed by LUNA, the token no longer has any inherent function or purpose.
Songbird (SGB) Price Plummets to All-Time Low of $0.01
The Songbird (SGB) cryptocurrency has suffered a dramatic 98% price drop from its all-time high of $0.43. The cause of the drop is not entirely clear, but it is possible that it is related to the long-delayed Flare (FLR) airdrop. Songbird serves as the canary network for Flare, and the missed deadlines for the airdrop may have led to a decrease in the SGB price. However, Flare is expected to complete the airdrop in January 2023, which could potentially have a positive impact on the SGB price.
As of now, the SGB price is trading at its all-time low of $0.01, and there are no indications of a reversal. It is important for investors to carefully consider the risks and potential of any cryptocurrency before making an investment.
FTX Token (FTT) Price Plummets 99% After Exchange Declares Bankruptcy
The FTX Token (FTT) has experienced a catastrophic 99% price drop from its all-time high and is currently trading below $1. The crash began on November 8th, when rumors circulated that the FTX exchange, which had issued the FTT token, was insolvent. The exchange subsequently declared bankruptcy, and its CEO, Sam Bankman-Fried, is now facing legal proceedings.
Like Luna, FTT is trading close to its all-time low and has no further use since the issuing exchange is now bankrupt. This makes the chances of a recovery for the FTT token seem unlikely. Investors should exercise caution and thoroughly research the risks and potential of any cryptocurrency before making an investment.
FTT/BUSD Two-Day Chart. Source: TradingView
2022 has been a challenging year for the cryptocurrency market, with several projects experiencing devastating crashes. Three of the most significant crypto crashes of the year were Luna (LUNA), FTX Token (FTT), and Songbird (SGB).
It is important for investors to carefully research and evaluate the risks and potential of any cryptocurrency before making an investment.
