The crypto ecosystem faced the heat in 2022 as coin prices fell and exchanges such as FTX went bankrupt, causing massive erosion of wealth in a still uncertain global macro-environment. While there could be more pain in the new year, Web3 innovation continues unabated
If ever there was an apt usage for Murphy’s Law (an adage, actually)—‘anything that can go wrong, will go wrong’—it would without doubt be for the crypto ecosystem in 2022. The collapse of stablecoins TerraUSD and Luna, the brain drain to investor-friendly crypto ecosystems, the sustained fall in prices of poster-boy crypto currencies Bitcoin and Ethereum (both down over 60 percent YTD) as investors exited riskier digital assets, and the FTX exchange filing for bankruptcy after a bank-type run all make 2022 a forgettable year for cryptos.
Add to this a fire-breathing regulator in the form of the Enforcement Directorate, which probed the role of at least 10 crypto exchanges in alleged money laundering via cryptos, and you have the proverbial crypto winter which became a long and gloomy one.
(This story appears in the 30 December, 2022 issue of Forbes India. To visit our Archives, click here.)