The Six Major Black Swan Events in Cryptocurrency, How Many Do You Know?

1. The Mentougou Incident in February 2014. 👿👿👿

The world's largest Bitcoin exchange MTGOX was hacked, losing nearly 850,000 Bitcoins, which accounted for 7% of the total Bitcoin supply. This event caused Bitcoin to plummet by 80%, triggering a crisis of trust in the cryptocurrency market.

2. The September 4 Incident in 2017. 🇨🇳🇨🇳🇨🇳

Brother Long fully banned ICOs, and major exchanges like Huobi and OKEx announced the suspension of domestic operations, resulting in an 80% evaporation of market value in just a few days. Investors suffered heavy losses, leading to a deeper understanding of the complexities of the cryptocurrency market.

3. The March 12 Incident in 2020. 📉📉📉

Bitcoin plummeted by 50% within 24 hours (from $8,000 to $3,800), and there was a massive liquidation in the DeFi ecosystem, significantly reducing market leverage. This demonstrated the volatility and uncertainty of the cryptocurrency market, yet belief in its potential and value remained strong.

4. The May 19 Incident in 2021. 🚫🚫🚫

Brother Long reiterated the illegal nature of cryptocurrencies, prohibiting payment institutions from providing related services and cracking down on mining projects. Bitcoin's hash rate plummeted in the short term, miners migrated overseas, and the market experienced severe fluctuations, causing huge losses for many investors, reminding everyone of the high risks and uncertainties in the cryptocurrency market.

5. The Terra/Luna Collapse in 2022. ❄️❄️❄️

The algorithmic stablecoin UST decoupled due to design flaws (relying on market arbitrage to maintain its peg), leading to infinite minting of LUNA tokens and a price collapse to zero. $40 billion in market value evaporated, triggering a credit crisis in the crypto industry and a major crisis in the decentralized finance sector, marking a significant turning point in the cryptocurrency market with far-reaching impacts.

6. The FTX Explosion Incident in 2022. 💣💣💣

The world's second-largest exchange FTX was exposed for misappropriating user funds to cover losses at its affiliated company Alameda, leading to a run and bankruptcy, with founder SBF arrested. Bitcoin dropped over 20% in one month, institutional trust collapsed, and regulatory scrutiny intensified. This triggered a trust crisis across the entire cryptocurrency market, severely impacting the market.