Let me talk about a few black swan events in the cryptocurrency world that left a deep impression on me. Let's see how many you have experienced:
1. 2014 Mentougou Theft: Bitcoin Plummeted to Ankle Level
The largest Bitcoin exchange in the world was hacked that year, and 850,000 Bitcoins disappeared. The price of $BTC dropped from $800 to $100, a staggering decline of 80%. This incident directly shattered market confidence, and the term "Mentougou" has become a taboo in the cryptocurrency world.
2. 2017 ICO Ban: 80% Market Value Vaporized in One Day
Suddenly, seven departments, including the central bank, issued a notice to completely ban token financing. Bitcoin plummeted from $4,100 to $2,800 that day. Those involved in ICO projects fled overnight, and the entire cryptocurrency market shrank by 80%. Investors were left with nothing, and the cries of despair still echo in our ears.
3. 2020 Black Thursday: Collective Cliff Dive in Cryptocurrency
The COVID-19 pandemic triggered a collapse in global financial markets, with U.S. stocks experiencing four circuit breakers, and the cryptocurrency market was no exception. On March 12, Bitcoin fell from $8,000 to $3,800, while $ETH suffered even worse, dropping from $288 to $88. This wave of plummeting prices caused countless people to be liquidated, and market sentiment hit rock bottom.
4. 2021 New Ban: 600,000 People Liquidated
On May 19, 2021, the three major associations in China issued a joint notice banning virtual currency businesses. Bitcoin plummeted from $42,000 to $29,000; although it later rebounded to $37,000, 600,000 people were liquidated that day, and $7 billion vanished into thin air. This dual massacre left contract traders with unforgettable memories.
5. 2022 Luna Crash: The Myth of Cryptocurrency Shattered
The Terra blockchain's $LUNA coin and UST stablecoin suddenly collapsed, with Luna falling from hundreds of dollars to almost zero, erasing $40 billion in market value in an instant. Bitcoin also fell from $40,000 to $30,000, with firms like Three Arrows Capital going bankrupt one after another, and Bitcoin even dipping to $10,000. This disaster plunged the entire cryptocurrency market into panic.
6. 2022 FTX Collapse: The Second Largest Exchange Goes Bankrupt
The world's second-largest exchange, FTX, was exposed for financial fraud, and the frenzy of users withdrawing funds led to a liquidity crisis and eventual bankruptcy. Founder SBF was arrested, and Bitcoin dropped to $15,000. This trust crisis caused the entire cryptocurrency world to once again fall into turmoil, and many people have yet to recover from the shock.
These events remind us that in the cryptocurrency world, we must always be prepared for the possibility of being harvested.
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