Michael Hypov is here ✌️
To conclude the previous year, I decided to make a brief analysis of the entire 2022, instead of roasting just one project.
Briefly about 2022:
- The fall began in November 2021 under the pressure of unfortunate macroeconomic factors and falling stock indices.
- The first full-blown hacker attack of 2022 was the hacking of the Wormhole bridge in the Solana network. 320 million USD was stolen on 02/22.
- May 2022 (indicated by the blue arrow on the chart) can be officially considered the beginning of the crypto-winter, which is associated with the collapse of Terra (Luna). Until this moment, the price movement of Bitcoin and most other cryptocurrencies in general fit into a trading range with strong support for the BTCUSD pair around 35,000 USD.
- SCAM of Terra (LUNA and UST) became the largest one in the history of cryptocurrency with more than 40 billion USD of losses for investors.
- The attempt to launch LUNA 2.0 failed despite the support from such large exchanges as Binance and Huobi (the idea was to abandon the stablecoin in the new version of the network and airdrop the new token to all holders of the old LUNA and UST).
- Terraform Labs (TFL) CEO Do Kwon was accused of cheating in LUNA 2.0 token distribution
- The SEC alleges that Do Kwon withdrew up to $80 million from Terra funds every month. In total, up to 2.7 billion USD in LUNA and UST tokens were withdrawn before the collapse of Terra.
- Interpol and a South Korean court issued an arrest warrant for Do Kwon. The founder of Terra is now hiding. 4400 crypto investors have formed an initiative group and are trying to find Do Kwon.
- SCAM Terra has caused the bankruptcy and cascade of closures of at least 100 other cryptocurrency projects (full list here).
- Following the failure of the algorithmic stablecoin UST, Near has made the decision to abandon its own USN stablecoin.
- The US government is putting forward a bill to ban algorithmic stablecoins for two years.
- The biggest victim of the fall of LUNA and UST was the second largest centralized exchange FTX. Its collapse led to losses of 32 billion USD.
- On December 13, FTX founder Sam Bankman-Freed was arrested in the Bahamas.
- On December 22, Sam was released on bail of 250 million USD.
- The number of victims of the bear market continues to grow. The latest bankruptcy in 2022 was announced by the mining company Core Scientific. Losses of investors sum up to about 4 billion USD.
- The total loss of cryptocurrency investors in 2022 amounted to more than 2 trillion USD.
- The total length of the bearish trend goes up to 400 days.
- The capitalization of the cryptocurrency market has decreased from 3 trillion to 800 billion USD.
2022 was a truly difficult year for everyone, without exception, but we must not forget that every crisis is an ideal soil for structural and qualitative growth in the future. Bankruptcies and multibillion-dollar losses in 2022 created a demand to clear the market of low-quality assets and maximize transparency. Of course, the states of the countries will not stand aside and the processes of legislative regulation of the crypto market will speed up.
At the last cryptocurrency summit in Kuala Lumpur in the past year, all market participants talked a lot about this. The request for regulation appeared both from private players and from institutional and infrastructure projects. The agenda related to the regulation of the market has turned 180 degrees and now they are talking about it as saving the cryptocurrency market and restoring confidence in the crypto among all participants.
(Here is a picture of me at the summit in Kuala Lumpur, you can find even more on my Instagram )
Of course, the cleansing process will be accompanied by bankruptcies and the exit of many players from the market. First of all, this will concern those projects that do not want or cannot work in the legal field. Therefore, as an investor and entrepreneur, I recommend to all market participants to get their business together, work with reliable partners and be careful when it comes to investment.
I see the lowest mark for Bitcoin as the main crypto benchmark around 12,000 USD. This is an all-too-obvious level of support that most participants expect. A scenario where Bitcoin goes below 12 is still difficult to imagine. Unfortunately, it cannot be excluded either :(
The ongoing cascade of bankruptcies and market cleanups will prevent the price of Bitcoin from forming a full-fledged bullish trend in 2023. At the same time, we can expect high price volatility in the range of 12,000–25,000 USD.
Fundamentally, the development of a bullish trend will only be possible in a favorable investment environment, which will be possible with the next large-scale wave of new participants.
This is important to understand — every new bullish trend in cryptocurrency is associated with an influx of new users. Therefore, investors should pay attention to projects trying to attract a mass audience to the cryptocurrency. The 8.Finance project — is one of these startups that create a bridge for the mass transition of users from web2 to web3 (cryptocurrency market).
If you know other similar projects that can bring hundreds of millions of new users to the cryptocurrency, please write about it in a comment on this post or in my chat. I’m sure everyone will benefit from knowing the names of the potential unicorns of the new bullish trend.
That’s all for today.
Keep optimism and peace of mind.
Take care of yourself and your money.
To buy 8.Finance tokens on the Private Sale, follow the instructions here.
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