Home/Questions/Q 374
Next
In Process

Shiraverse Latest Questions

Raju Kumar
Asked: 2024-03-25T14:29:16+05:30 In: ,

Which cryptocurrency went bust?

Which cryptocurrency went bust?
Cryptocurrency
Share

    Related Questions

    Leave an answer

    You must login to add an answer.

    Need An Account,

    2 Answers

    1. Charlotte Wood

      Several cryptocurrencies have gone bust over the years, often due to scams, mismanagement, or market fluctuations. Notable examples include:

       

      1. BitConnect: Once a popular lending platform, it was exposed as a Ponzi scheme and collapsed in 2018.

       

      2. Terra (LUNA): In 2022, the collapse of its algorithmic stablecoin, UST, led to a significant drop in value for LUNA.

       

      3. Mt. Gox: While not a cryptocurrency itself, the exchange was one of the largest for Bitcoin trading before it was hacked in 2014, leading to the loss of hundreds of thousands of Bitcoins.

       

      These examples highlight the risks associated with investing in cryptocurrencies.

    3. Cryptocurrency
      This answer was edited.

      Several major cryptocurrency firms went bust in recent years, causing significant losses for investors. From FTX’s spectacular collapse to the failures of Celsius Network, BlockFi, and more, the aftermath of these bankruptcies has reshaped the crypto landscape. Explore the key players that went under and why.

      Key Crypto Failures

      1. FTX: Once a leading crypto exchange, FTX filed for bankruptcy in November 2022. Allegations of fraud and mishandling of funds led to its downfall, with founder Sam Bankman-Fried facing legal consequences.
      2. Celsius Network: A crypto lender that filed for Chapter 11 bankruptcy in July 2022. Celsius owed billions and was unable to meet obligations after risky investments.
      3. BlockFi: Filed for bankruptcy following FTX’s collapse, with exposure to both FTX and Three Arrows Capital leaving it financially unstable.
      4. Voyager Digital: Another crypto lender that succumbed to the effects of the crypto market downturn in mid-2022, filing for bankruptcy after the failure of Three Arrows Capital.
      5. Three Arrows Capital: A crypto hedge fund that collapsed in 2022 after the failure of TerraUSD and its associated assets, contributing to a chain of bankruptcies across the industry.

       

      These companies’ bankruptcies highlight the risks in the crypto world, where volatility, mismanagement, and interdependencies between firms can lead to cascading failures.