Top crypto news of 2022: positive and negative
The year 2022 is coming to an end and the crypto world has faced a thousand challenges with a lot of negative news unfortunately (which, nevertheless, serve to purify the sector and return to the light) and some positive ones: let’s take a look take a look at the top crypto news of the year coming to an end.
In this overview retracing the journey or rather the Stations of the Cross experienced by investors this year, we start from the month of February when a latent conflict that began in 2014 resurfaced with vigor.
Vladimir PoutineThe Russian army invades the border territories with Ukraine and from there begins a war of attrition, more tactical than warlike which will lead to an escalation of tensions up to the nuclear threat.
However, not all bad news is an end in itself, in which case a dark page in recent history is delivering the crypto world’s first surge of mass solidarity to humanity.
Vitalik Buterin with Ethereum and many other centralized and non-centralized finance companies strive to provide funds, food, medicine and financial freedom to a battered and starving country.
Waiting, Elon Muskfollowing an attack by Moscow militias that destroyed the Ukrainian communication and Internet connection system, provides the optimal solution by providing the country with a massive supply of its own satellite connection system named Stellar Link.
If we were talking about football, we would say that the game of crypto world just starting to unfold, one on one and ball in the middle.
We don’t pass the spring in time for the industry to fall on the industry’s first major injury that caused huge losses and the first drop in interest in cryptocurrencies.
Top crypto news of 2022: the beginning of the difficulties
The Terra blockchain ecosystem and its Luna token (LUNA) collapse resoundingly to a value close to zero despite desperate attempts to recover.
Millions of investors are losing astronomical sums and at the time it was the biggest financial shock in the crypto market.
Soon after, many exchanges remove the dollar-pegged stablecoin from listing use by implementing the Hard Fork.
Luna as it was modified, and it is replaced by the new Terra Classic Token (LUNC) and Luna 2.0 (LUNA) which are currently tradable on almost all exchanges.
But Murphy’s Law is known to always be around the corner and the following month another major scandal involves the crypto world.
Capital of the Three Arrows (3AC) is a Singapore-based crypto hedge fund that was founded in 2012 by Kyle Davies and Su Zhu.
On June 27, the hedge fund, by order of the court of the British Virgin Islands, declared bankruptcy with the obligation of immediate liquidation.
Hell is served and this company also goes bankrupt burning millions more investors on the altar of lack of transparency.
According to the note accompanying the bankruptcy filing, the company, which had borrowed billions of dollars to cover its business activities, is forced to repay $3.5 billion in debt it does not have, much to the chagrin of investors. who believed him. .
The geopolitical environment is deteriorating
Meanwhile, the war continues and Putin does not hint at any negotiations or even an about-face.
The conflict escalates and NATO intervenes.
Raw materials and high energy prices are raging around the world, and citizens of all countries in the world have to reckon with exorbitant bills, bills that reach astronomical amounts, even for companies that are kneeling even the most iconic ones in the tech industry.
A light comes in September, however, when Ethereum implements the transition from proof-of-work based on cryptocurrency mining to proof-of-stake based on staking.
Ethereum’s average block time, i.e. the time it takes a miner or validator to verify a block, is reduced by 13% while power consumption drops to almost zero much to the delight of the Green Party.
Ethereum hits the mark with Proof-of-Stake (PoS) completing the transition on September 15 and appreciating in the market.
In the meantime, we come to the present day or rather the last month that resulted in the biggest scam of all time in the industry.
Here Comes FTX Bankruptcy
Sam Bankman-Fried founder of FTX via its FTT token and another company related to it (Alameda Research) is funneling funds to the US Democratic Party, which does not create a small embarrassment at the moment of truth for many involved and, in particular, due to ‘a false cover, triggers a series of chain reactions leading to the FTX collapse.
Now forced into bankruptcy, the SBF company took refuge in Chapter 11 and, in a few days, the genius of finance and programming was stopped to the Bahamas then extradited in the United States on the orders of the American authorities.
The question of the cover-ups had been raised at the time by CZ, who however said he was unable to rescue the competitor.
2022 also brings with it one last major issue perhaps the real market maker, inflation.
From January to today, the issue of inflation, starting with the December 2021 data, has kept the Fed and investors on edge, as a double-digit CPI hasn’t been seen in years.
Thanks to monstrous measures, the US Federal Reserve has managed to contain this financial nemesis by reducing it to 7% from almost 10% at the start.
During the year, the interest rate was raised by a total of 400 basis points, with the latest 50 basis point increase registering the largest intervention since the 1970s.
Further rate hikes are planned for 2023 but since the last FOMC conference, Jerome Powell has said that they will be softer and will be assessed on a case-by-case basis, in order to contain not only inflation but also the intensity of a recession on the doorstep of the United States and already present in Europe.
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