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The Biggest Surprises in Cryptocurrency in 2022

Delbert Williams IIBy No Comments8 Mins Read

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2022 has seen the bankruptcies of many key crypto and blockchain companies as the market selloff in May rocked the industry. As a result, many cryptocurrencies lost their value and many investors withdrew their funds from the market. Additionally, the unprecedented ramifications of the meltdown exposed many blockchain and cryptocurrency companies who were unprepared for turbulent times.

But the conglomerate of companies has been able to resist market downsides and thrive in turmoil. The crypto market as a whole continues to grow and has now reached 320 million users.

As we look back on a year full of surprises, we’ve rounded up some of the biggest stories that have stunned the industry.

binance and the beast

Binance is currently the world’s largest cryptocurrency exchange by trading volume. The company has successfully entered major crypto markets in recent years, including the US with its Binance.US subsidiary. In total, the exchange, which houses over 300 cryptocurrencies, is estimated to have facilitated around $22 trillion worth of cryptocurrency trading in 2022.

According to data from Similarweb, the platform consistently received over 70 million monthly visits in Q3, nearly double that of its closest rival Coinbase.

The crypto exchange has made several notable acquisitions in 2022 to expand its geographic reach. Among them were Japanese cryptocurrency trading platform Sakura Exchange BitCoin and Indonesian digital currency brokerage Tokocrypto.

However, it wasn’t all smooth sailing. In December, his CEO of Binance, Changpeng “CZ” Zhao, downplayed concerns about a spike in user redemptions after users withdrew his $1.9 billion from the platform in 24 hours. I was forced to Zhao said he blamed external factors for FUD (Fear, Uncertainty, and Doubt) among some users.

FUD surged after Mazars’ proof-of-reserve audit firm suspended collaboration with Binance and other cryptocurrency clients. Unexpected developments have made investors anxious about keeping their money on exchanges.

Alien World Dakoko

Dacoco is the publisher of Alien Worlds, the highest ranked gaming metaverse ecosystem in 2022.

According to data obtained from DappRadar, the game was able to maintain its position as the world’s most popular GameFi platform in 2022, with an average of over 200,000 unique active wallets daily. This was surprising given the tough competition Alien Worlds faced. The game topped the cryptocurrency games list in 2021, so maintaining that position is an extraordinary feat.

That said, Alien World’s popularity is fueled by features such as multi-chain interplay, which utilizes the best elements of WAX, Ethereum, and BNB smart chains to enhance the gaming experience.

In 2022, Dacoco developers have introduced several innovative concepts to further engage users and strengthen the democracy of the Alien World ecosystem. Among them was the in-game Decentralized Autonomous Organization (DAO). This new feature allows players to support and regulate any of his six competing DAOs, called “syndicates,” using the native in-game governance token, the Alien Worlds Trilium (TLM) coin. Now

That said, the platform experienced some grisly moments earlier this year when transaction volumes steadily declined. At one point in March, when trading volumes were at their lowest, the platform saw him record less than 4 million transactions per day. Alien Worlds has since recovered and now has over 13 million transactions per day.

Alien Worlds will face serious competition from upcoming blockchain game projects such as Meta, Decentraland and The Sandbox once the game truly goes mainstream.

terraforming collapse

Terraform Labs is the blockchain company behind Terra Classic (LUNC) and TerraClassicUSD (USTC) tokens. The company is based in Seoul, South Korea and is led by Kwon Do-Hyung, commonly known as Do Kwon.

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The Terra crypto ecosystem was seen as the catalyst for the crypto market crash that occurred in May, ultimately wiping out more than $2 trillion from the market. after it was sold off, driving investors into a feverish sell-off. Few companies knew the extent of the damage before the market trajectory suddenly changed, and many investors were surprised.

A cascade of events, including a sudden oversized withdrawal mimicking a bank run, is believed to have led to the network’s eventual collapse.

This chain of events liquidated billions of dollars worth of the stablecoin and its sister coin LUNC in a matter of hours. Terraform Labs executives face allegations of manipulation and money management.

What’s wrong, FTX?

The collapse of FTX in 2022 was one of the industry’s most spectacular surprises. The implosion reduced the exchange’s collateral from about $60 billion to just $9 billion in a matter of months, but at the same time left him facing $8 billion in debt as investors fled the company. Liquidity problems arose out of the blue, and few investors could have predicted the crisis.

FTX is now led by a new team led by CEO John J. Ray III. Ray III has been involved in the restructuring of several major companies affected by the scandal, most notably Enron.

CoinShares flaunts profits

CoinShares is one of Europe’s largest digital asset investment firms, managing billions of dollars worth of digital assets. The company’s customer base consists of institutions and high net worth individuals interested in investing in digital assets. CoinShares currently has offices in major investment hubs such as Jersey, New York, London, Stockholm and Paris.

2022 has been a good year for CoinShares, with a significant increase in its assets under management (AUM). According to the company, Announcement In October, AUM increased to $25 billion. This is a significant increase from his AUM of $2.67 billion, which the company achieved in June 2021. The positive result came as a surprise, given that the crypto industry has been on a downtrend since the market crash that occurred in May.

Chainalysis to the rescue

Chainalysis is a blockchain data analytics company famous for its crypto-tracking service that helps businesses interact securely with dynamic networks. Its customers include major banks, governments, cybersecurity, insurance companies, and cryptocurrency companies such as exchanges that regularly face compliance and transparency issues.

Tracking billions of dollars worth of illicit cryptocurrency is the name of the game, and in 2022, the company has increased its valuation following its Series F funding round. A fundraising event in May saw a $170 million capital injection, raising the company’s value to his $8.6 billion. The soaring valuation was a positive surprise, indicating increased investor confidence in the company as it continues to work on high-profile cases.

Chainalysis helped authorities seize tens of millions of dollars in stolen cryptocurrencies in 2022. This money was part of his $600 million stolen from the Ronin Network.

The company is currently tracking stolen cryptocurrencies from the FTX cryptocurrency exchange.

Chainalysis currently faces increasing competition from competitors such as CipherTrace, Elliptic, Scorechain and Coinfirm, each offering their own unique offering.

Sink 3 arrows into Voyager

Voyager Digital and Three Arrows Capital (3AC) are two of the companies most affected by the crypto market downturn in May. Their downward spiral was fueled by contagion after the sharp market pullback caused by Terra’s meltdown.

Voyager was embroiled in turmoil after lending about $650 million to Three Arrows Capital hedge fund. 3AC used the money to make risky bets based on the assumption that the cryptocurrency market will continue to rise in the medium term.

However, Terra’s collapse was an unexpected development that drove the company into the red. 3AC reportedly invested about $200 million in LUNTC, the value of which he has lost more than 99% in a matter of days. 3AC he filed for bankruptcy in July and was unable to repay his loan to Voyager. This exacerbated Voyager’s liquidity problems, forcing it to suspend customer withdrawals and file for bankruptcy.

Big surprise?Not really

2022 will be a turbulent year for the cryptocurrency industry, testing the resilience of the cryptocurrency market against repeated knockdowns. Hard lessons have been learned for cryptocurrency companies to become more accountable in the future. Several events in 2022 have also shown that some practices, such as the use of leverage in trading, can be dangerous and lead to large losses in the event of sudden market movements.

In addition to this, 2022 has revealed the crypto sector’s ability to offer a wide range of innovative fintech and investment opportunities that will continue to appeal to different types of investors.