Crypto Panic History
The history of cryptocurrency panics can be traced back to several
significant events that have caused substantial market volatility and
investor anxiety.
One notable event occurred in May 2022 when Bitcoin's price plummeted
to its lowest point since 2020, and cryptocurrency exchange Coinbase saw
a significant drop in value.
Another instance was the crypto crash in June 2022, which evoked echoes of
the Panic of 1907, with Sam Bankman-Fried stepping in to support
distressed assets and troubled businesses, much like J.P. Morgan did
during the 1907 crisis.
Cryptocurrency exchanges have faced numerous security breaches and
hacks, leading to significant financial losses for users. For example, the hack
of cryptocurrency exchange MtGox in 2014 resulted in the theft of $450
million worth of Bitcoin, causing the exchange to collapse and leaving
customers without reimbursement.
Similarly, the hack of KuCoin in 2020 saw $281 million stolen by suspected
North Korean hackers, although the company managed to recover most of
the funds and refund customers.
These events highlight the vulnerability of the cryptocurrency market and the
importance of robust security measures.
Despite rapid growth, the crypto market remains susceptible to
large-scale hacks and security breaches, which can lead to significant
financial losses for investors.
