5 high-profile altcoin explosions have shaken users’ trust, billions of which were wiped out in the crypto winter of 2022. As Kriptokoin.com, we have compiled the tokens that have collapsed in the market for you.
Explosions last year
2022 was a year of extraordinary cryptocurrency booms, as several projects collapsed after the entire ecosystem was shattered and many more were on life support. The results of these cryptocurrency projects have not only removed billions of dollars from the crypto economy, but also eroded trust.
History shows that there have been many failures in the cryptocurrency market economy over the years, and a great example is that on May 5, 2013, eight of the top ten cryptocurrencies were basically forgotten even though some still hold value. During the crypto winter of 2022, several high-profile crypto projects have exploded.
These 5 altcoins that have seen quite a collapse in the market
Celsius (CEL)
On January 1, 2022, the crypto asset Celsius (CEL) was trading at $4.26 per coin and was the 93rd largest cryptocurrency by market cap at the time. CEL was essentially an exchange token, and now bankrupt crypto credit institution Celsius has advertised the ERC20 token as the ‘backbone of the Celsius Network’. However, on June 13, 2022, the cryptocurrency lender stopped all transactions and withdrawals, and 30 days later Celsius filed for bankruptcy protection.
As of June 13, the CEL is extremely volatile and these days the ERC20 token is trading at $0.48 per unit, which is 88.73% lower than the first day value of 2022. The entire supply is locked in the bankruptcy company’s wallets, with 100 CEL wallets holding 98.90% of the entire supply. Novawulf Digital Management has been announced as the sponsor of the company’s restructuring plan.
Terra (Luna)
On January 1, 2022, 421 days ago, Terra (LUNA) was the ninth largest cryptocurrency by market cap, with a market cap of $31.86 billion. On that day, LUNA was trading at $88.08 per unit, and the network’s stablecoin UST was still pegged to the US dollar. Today, LUNA is ranked 55th and LUNA tokens are trading for less than one US cent at $0.00016135 per unit. UST is no longer pegged to the dollar and is trading at $0.028 per coin.
After the fallout, Terra rebranded and launched a new LUNA, renamed LUNA Classic (LUNC). Do Kwon, chairman of Terraform Labs, the company behind the Terra blockchain ecosystem, has been accused by the US Securities and Exchange Commission of defrauding investors. Although most of the Terra development community has migrated to LUNA 2.0, LUNC still has a small group of dedicated supporters.
HUSD
HUSD is a stablecoin pegged to the US dollar on October 27, 2022. It has been pegged to the dollar since September 19, 2019, but is currently trading at $0.135 per unit. Although this altcoin is no longer a stablecoin, its market cap is still $25.64 million. However, in the last 24 hours, HUSD has only seen $11,830 in trading volume and the token has only been listed on a few exchanges.
There are still 187,817.004 HUSD cryptocurrencies in circulation and 9,448 unique addresses hold HUSD balances. Typically, less than five HUSD transactions are made per day. While the current market cap of HUSD is just over $25 million, it reached a peak of over $1 billion on May 23, 2021.
Voyager (VGX)
Voyager Token (VGX) is another cryptocurrency that has lost significantly since Voyager Digital paused operations and filed for bankruptcy protection. In January 2022, a single Voyager Token was trading at $2.56, but today it has dropped to $0.45. Like Celsius (CEL), VGX has held some value as some investors hope the firm’s restructuring plan can support the exchange token.
Similar to CEL, VGX is very concentrated with 6,267 unique addresses holding VGX, but 100 owners own 98.6% of the coins in circulation. Typically, less than 150 VGX transactions are made daily.
FTX Token (FTT)
Ftx token (FTT), another exchange token tied to a bankrupt asset, has also fallen significantly since FTX crashed in the first week of November 2022. It is the 34th largest cryptocurrency. Today, FTT is valued at $1.49 per token, and the crypto asset’s ranking is not valid as all supply has been released from the FTX token contract deployer.
Similar to CEL and VGX, there is some hope that FTT can rally if FTX manages to restructure some of its business. For example, the value of this altcoin has increased significantly after new FTX CEO John J. Ray III discussed the possibility of restarting parts of FTX. After millions of FTTs illegally released from FTT’s main distribution address, FTT is not available on exchanges as it used to be, as some exchanges have blocked deposits. FTT is also highly concentrated, with the top 100 owners holding 99.20% of the entire FTT supply.
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