Whereas the chapter of Sam Bankman-Fried’s cryptocurrency trade FTX has dominated headlines on the finish of this yr, it doesn’t characterize the most important losses for crypto buyers in 2022, in line with a Wednesday report from US-based blockchain analytics agency Chainalysis.
- The report says that the collapse of the Terra Luna stablecoin UST in Could and the implosion of lending platform Celsius and the hedge fund Three Arrows Capital (3AC) just a few weeks later drove the best realized losses in particular person crypto investments this yr.
- TerraUSD, or UST, was an algorithmic stablecoin — a digital asset pegged to the worth of the US greenback — which crashed in Could, shedding virtually all its worth after beforehand having a market capitalization of as excessive as US$40 billion. The collapse then triggered the chapter of Celsius and 3AC over the summer season.
- Primarily based on information of weekly realized positive factors and losses of all private crypto wallets, Chainalysis estimates that the Terra Luna crash resulted in US$20.5 billion in realized losses, whereas the autumn of Celsius and 3AC worn out US$33 billion.
- In keeping with a report on FTX from crypto analytics agency Nansen, main losses at FTX that finally contributed to the collapse of Bankman-Fried’s crypto empire doubtless additionally occurred within the aftermath of Terra Luna’s implosion.
- The chapter of FTX resulted in about US$9 billion in realized losses, mentioned Chainalysis. Nevertheless, the report notes that this doesn’t embody the belongings of buyers which were frozen on the FTX trade.
- FTX’s demise has left an estimated 1 million buyers with none certainty they may get their belongings again, in line with chapter filings. No less than US$8 billion in funds are lacking, in line with Tuesday costs towards Bankman-Fried from the Commodities Futures Buying and selling Fee.