Biggest Blockchain Stories of 2022
There is no doubt that 2022 has been eventful if not rough for the cryptocurrency industry. From just a little under US $3 trillion, the total market capitalization is sitting at only $800 billion at this moment.
Coinmarketcap.com: total market capitalization timeline over the year 2022
Nevertheless, crypto is constantly evolving and there have been many significant developments in the industry, with a reflection on traditional finance.
Even though, here are the top blockchain stories from 2022:
- Ethereum Merge
September 2022 saw the official transition of Ethereum to a Proof of Stake (PoS) model. A new version of Ethereum, known as Ethereum 2.0, is the result.
The Ethereum Merge is the joining of Ethereum’s proof-of-stake (PoS) Beacon Chain with the Ethereum Mainnet to transition the Ethereum blockchain off the legacy proof-of-work (PoW) system.
Before the Merge upgrade, the energy consumption of Ethereum ranged between circa 46TWh and 94TWh. But this energy consumption has now decreased by more than 99.9%.
The Merge generated at least 420,000 news stories based on a Google search.
- TerraUSD De-Pegging and LUNA
For four years, Terra Network and its CEO Do Kwon were household names in the cryptocurrency industry before suddenly collapsing. As the world’s cryptocurrency market reeled from its losses, the Luna crypto network collapsed.
TerraUSD has 40,500 news stories on Google search.
- Celsius Network
The banking-style Celsius Network debuted in 2017. According to the company’s website, users could deposit cryptocurrency and receive up to 17% in interest, and Celsius would then make loans based on the value of the deposited cryptocurrency. The previous year, Celsius products were deemed illegal by regulatory authorities in several states. In June of 2022, the company blocked all of its 1.7 million users from withdrawing or sending any of the $20 billion in AUM. In July, the firm declared bankruptcy. A court filing claims that financial profits dropped by 80 percent between March 30 and July 14, 2022.
About 366,000 results news stories on Google search.
- 3 Arrows Capital
Cryptocurrency hedge fund 3 Arrows Capital (3AC), based in Singapore, has filed for bankruptcy. After lenders derided the hedge fund for being incapable of compensating claims due to a decrease in cryptocurrency markets, a court in the British Virgin Islands issued an order that made this possible. 3AC took a risky approach to trading by looking for light collateralized shareholdings in several different cryptocurrencies.
3 Arrows Capital generated up to 142,000 news stories on Google search and more are rolling out.
- FTX and Sam Bankman-Fried
FTX and Alameda Research, two companies involved in cryptocurrency, have been accused of a defrauding scheme and faced with a $10-12 billion shortfall. The CEO of Alameda, Caroline Ellison, attempted to dispel rumors of financial issues by offering to buy Binance’s position in the company’s currency (FTT) at a discounted price. However, this only further undermined confidence in the solvency of FTX and Alameda, and the FTT price fell from about $26 to $1 in a matter of days.
The collapse of FTX and Alameda has had widespread consequences beyond just the funds lost in the hack. The actions of CEO SBF and the resulting aftermath could lead to stricter regulations in the cryptocurrency industry as a whole.
FTX and SBF bring up a striking 8,410,000 results in Google News search.
- BlockFi
On Monday, November 28th, 2022, BlockFi filed for bankruptcy. As it was recently invested in by FTX, it is likely a manifestation of the FTX-caused crypto crisis. Due to substantial exposure to FTX through its sister company Alameda, BlockFi announced earlier in November that it would no longer authorize withdrawals.
Nearly BlockFI 145,000 results in Google New stories.
- Voyager Digital Deposit Insurance Claims
A client of the crypto broker/lender defaulted on a $650 million debt in July, prompting the company to file for bankruptcy protection. The FDIC began looking into the company the same week after receiving complaints that it falsely assured customers their deposits were protected up to $250,000. The cryptocurrency exchange FTX paid $1.42 billion to acquire Voyager Digital’s assets. Voyager Digital reopened the bidding process for FTX’s assets after that company also declared bankruptcy. After abandoning plans to acquire FTX, Binance.US recently announced that it would purchase Voyager Digital for $1.02 billion.
Voyager Digital Insurance Claims bring up more than 30,000 News stories on Google.
- MiCA Regulations in Europe
In a press release, The European Union (EU) has reached a provisional agreement on the Markets in Crypto-Assets (MiCA) proposal, which is a regulatory framework for cryptocurrencies and other crypto-assets. The MiCA proposal covers issuers of unbacked crypto-assets, “stablecoins,” trading venues, and wallets where crypto-assets are held.
MiCA regulations are considered some of the most comprehensive regulations applicable to crypto-assets of any jurisdiction globally.
- Brazil and New Crypto Law
Brazil’s President Jair Bolsonaro has approved a new law that regulates cryptocurrencies in the country. The law defines fraud involving virtual assets as a felony punishable by between four and six years in jail and a fine. It also establishes a license for “virtual service providers,” which digital asset enterprises, including exchanges and trade intermediaries, must receive.
Those cryptocurrencies that qualify as securities will be governed by the Brazilian Securities and Exchange Commission, while those that do not will be governed by a separate, as-yet-unknown entity. Companies will have one hundred eighty days to comply with the new regulations.
Brazil’s regulatory movement makes history with more than 410,000 New stories on Google search.
Overall, it seems that the industry faced significant challenges and difficulties in 2022, but it remains constantly evolving and continues to have a significant impact on traditional finance.
Written By: Omar Marzouk
Writer, Content marketing at Blockchain Group
