A Year of Chaotic Contrasts

2022 was supposed to be the year when cryptocurrency finally became as popular as avocado toast, but instead, it turned into a cautionary tale. With venture capitalists putting their faith (and money) into the crypto universe in 2021, the following year unveiled a plot twist nobody saw coming—turning the crypto party into a devastating disaster.

The Rise of Self-Custody

One of the biggest plot twists came from hardware wallet providers, specifically Ledger and Trezor. Faced with the havoc wreaked by the collapse of centralized exchanges like FTX, crypto enthusiasts learned that if you can’t trust your exchange, you could always trust your wallet… or at least your Ledger. Self-custody suddenly became the hottest new trend, and those plastic devices that people had neglected for years became the hottest club in town.

• Ledger saw a whopping 300% increase in sales following the implosion of FTX.
• Trezor had its highest sales day ever, proving that when life gives you lemons, you buy a wallet instead.

The White Hat Knights

Amid the rubble, there were the unsung heroes—white hat hackers. These tech-savvy crusaders swooped in to save the day, returning millions of dollars in stolen crypto and flagging security bugs before they could cause further havoc. According to reports, these magicians prevented losses of up to $20 billion through their bug bounty programs. Truly, they deserve a superhero cape and maybe a Netflix series.

Tether’s Resilience

Even in the face of adversity, Tether (USDT)—like an unflappable uncle at a family reunion—weathered the storms of doubt. Unlike many of its counterparts, USDT managed to maintain its peg, proving you can survive even the wildest of family dramas. By the end of the year, Tether had pivoted to enhanced transparency, with 82% of its reserves in liquid assets. To all the naysayers looking for a chink in Tether’s armor, it seems the stablecoin didn’t just survive, it thrived!

Tragedy Strikes with Terra

If 2022 was the year of outrageous twists, then Terra’s implosion was its shocking climax. Once a shining star, TerraUSD (UST) fell from grace, obliterating around $40 billion in investor capital and taking the fragile ecosystem down with it. Things got so bad that even the word ‘algorithmic’ became synonymous with ‘do not trust.’

The FTX Fiasco

No discussion about 2022 can skip over the unceremonious downfall of Sam Bankman-Fried and his infamous exchange, FTX. Once a titan with a $32 billion valuation, it crashed amidst a financial circus that put the ‘fun’ in dysfunctional. Customers who once placed their loyalty—and sometimes life savings—at its digital doorstep lost everything in a matter of hours. It was a grim reminder that the crypto world is not for the faint of heart.

In Conclusion: Lessons Learned or Forgotten?

2022 will undoubtedly go down in history as one of the most significant years for crypto—a true annus horribilis. As venture capitalists adjust their strategies and industry participants reflect on their missteps, there’s a possibility that these lessons could lead to tighter regulations, sparking hope for a more secure future. For now, crypto investors would prefer to hit the reset button and leave this chaotic year behind—just like the rest of us after a wild night out.