The Bank for International Settlements (BIS) report stated that the crypto industry lost more than $650 billion after two major crashes last year.
The report by the BIS examined the crypto industry, which has suffered billions of dollars in declines due to the bankruptcy of FTX and the effect of the Terra crisis. The BIS reports that after these two major crashes, the crypto industry lost more than $650 billion in 2022. In the bankruptcy of FTX alone, more than a million crypto investors were negatively impacted.
The Crypto Industry Lost Over $650 Billion Last Year
BIS has released a report titled “Crypto Shocks and Retail Losses”. This report examined the general activity in the crypto industry. The report described trading behavior during and after the scandals, gains and losses, and the effects of crypto market turmoil on the wider financial system.
The FTX and Terra crashes that marked the year 2022 revealed more than $650 billion in losses to the crypto industry and millions of aggrieved investors.
According to the BIS, the $40 billion Terra ecosystem collapse in May evaporated more than $450 billion from the market. About six months later, the FTX bankruptcy also evaporated more than $200 billion from the market.
BIS also noted the increase in users’ daily activity on the crypto trading platform over the past year. According to the BIS, investors acted more cautiously and cautiously.
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