A summary of black swan events in the cryptocurrency circle; in the face of black swans, there are no experts! [Risk is always present, always maintain risk control.]

1. The Mt. Gox Incident

In February 2014, the Mt. Gox incident was regarded as one of the most serious events in the history of the cryptocurrency circle. At that time, the world's largest Bitcoin exchange, MTGOX, was hacked, losing nearly 850,000 Bitcoins, accounting for 7% of the total global Bitcoin supply. This incident not only caused Bitcoin to plummet by 80% but also triggered a crisis of trust in the cryptocurrency market.

2. The September 4 Incident

The 94 incident occurred in 2017 and was triggered by regulations from mainland China.

On September 4, 2017, the central bank and seven ministries defined ICO (Initial Coin Offering) as unauthorized illegal public financing. The announcement stated that ICOs were suspected of illegal token issuance, illegal securities issuance, and illegal fundraising, severely disrupting the economic and financial order.

After the announcement, the exchange tokens experienced a cliff-like drop; various tokens fell below their issuance price, Bitcoin dropped by 32%, and 100,000 people in the cryptocurrency circle lost 160 million in assets overnight, marking a dark moment.

3. The March 12 Incident

On March 12, 2020, according to Binance data, Bitcoin fell from around $7,900 to about $4,410, and on March 13, it reached its darkest moment, dropping to around $3,780, with a maximum decline exceeding 50% over two days. At that time, due to the pandemic, the global economy was in recession, and the US stock market had already begun to plummet. Many cryptocurrency investors viewed Bitcoin as a safe-haven asset, but whether an asset is a safe haven depends on the consensus of more investors.

4. The May 19 Incident

On May 18, 2021, the central bank issued a document stating that the three major financial associations announced that providing virtual currency trading services was suspected of conducting illegal financial activities. There was no significant drop that day, but on the evening of May 19, Bitcoin fell from around $44,000 to about $29,000, a drop of 34%.

5. The Luna Black Swan Incident

This event must be traced back to a South Korean individual, Do Kwon, who established a public blockchain ecosystem called Terra. This ecosystem primarily operates through these two tokens:

One is the token Luna on the Terra ecosystem.

The other is the stablecoin UST, which exists on the Terra chain.

These two tokens interact as follows:

One UST = 1 dollar's worth of Luna. This means that if the price of Luna is 1 dollar, you can exchange one UST for it; if the price of Luna rises to 100 dollars, you can exchange 100 UST for it.

UST and Luna have a "two-way burn and mint" relationship. This means that when you exchange Luna for UST, there is one less dollar's worth of Luna in the market and one more UST; when you exchange UST for Luna, there is one less UST in the market.

In May 2022, many large holders began to sell UST, causing the price of Luna to plummet by over 90%, dropping to 10 dollars, and UST completely depegged to 0.6 dollars.

On May 12, Luna continued to plummet by 99%, nearly reaching zero, and the price of UST fell below 0.2 dollars.

On May 13, many exchanges delisted Luna and suspended trading, and the Terra public chain went offline.

The LUNA black swan incident marked a significant turning point for the cryptocurrency market, triggering a major crisis in the decentralized finance (DeFi) sector and having far-reaching effects on the market.

6. The FTX Collapse Incident

Lastly, we must mention the FTX incident that occurred at the end of 2022, which truly shocked many cryptocurrency users.

FTX, as the second-ranked exchange in the cryptocurrency market at the time, received investments from institutions like Sequoia, Temasek, and BlackRock, achieving a valuation of $32 billion in the primary market.

In late November 2022, it suddenly collapsed, with internal management in complete disarray, misappropriating customer funds at will.

With the collapse of FTX, Binance further stabilized its position as the number one exchange.

The FTX collapse triggered a crisis of trust across the entire cryptocurrency market, severely impacting the market.

In 2022, influenced by LUNA and FTX, the price of Bitcoin fell from around $60,000 to about $15,000, a drop of 75%.