Cryptocurrency: 5 projects with a massive loss of value

The collapse of the Terra ecosystem along with the native token LUNA and stablecoin UST can already be considered one of the greatest historic moments in the crypto industry. But perhaps such disasters are not so unusual after all?

According to data from Coingecko, at least five promising assets have lost more than 90% in value over the past week from their record high (AZH). An all-time high describes the highest price of a cryptocurrency since it came on the market.

Even some of the best digital assets by market value almost came on the list. Dogecoin (DOGE) lost 88% against AZH, Uniswap (UNI) recorded a loss of 87% and the XRP price (XRP) also fell by 87%.

Crypto Crash 1: Internet Computer (ICP)

The Internet Computer Token (ICP) was once worth $ 700 before dropping to $ 8.37 today. This corresponds to a value loss of exactly 98.8%.

ICP is a token from the Swiss non-profit organization Dfinity Foundation, which was launched in 2021 and immediately took a huge momentum. In less than four days, the token was number eight among the world’s largest cryptocurrencies.

The project has been developed by the Dfinity Foundation since 2016. The goal of the organization is to build a decentralized, scalable blockchain to store data and support applications in the cloud. The project is led by an enthusiastic tech entrepreneur, Dominic Williams. Williams wants to create a public Internet that can free itself from the clutches of big technology companies like Google, Facebook or Amazon. ICP is the network’s native token.

An image from Coinmarketcap

Crypto Crash 2: Filecoin (FIL)

The Filecoin price reached its highest record on April 1, 2021 at a value of 236.84 US dollars. Currently, the price has dropped 96% to $ 8.94.

When Filecoin was launched in 2017, ICO reached with the same record amount. ICO stands for “Initial Coin Offering” and describes the period during which a project raises investments for launch. Filecoin’s ICO was $ 257 million, surpassing Tezos’ ICO, which had previously led $ 232 million. Investors in the project include Sequoia Capital, Andreessen Horowitz and Union Square Ventures, among others.

Filecoin was created to create a decentralized network for digital storage. Users can efficiently rent available storage space and receive Filecoins in return for payment.

An image from Coinmarketcap

Crypto Crash 3: EOS

The EOS award reached its highest record on April 29, 2018 at a value of $ 22.71. The token is currently trading at around $ 1.39. This corresponds to a value loss of 93.9%.

The blockchain project was one of the first “Ethereum killers” and raised $ 4.2 billion in ICO. After several trial versions, EOS was released in June 2018. Supporters of the project include British hedge fund manager Alan Howard, CEO of Moore Capital Management Louis Bacon and co-founder of PayPal and Palantir Peter Thiel.

However, the euphoria disappeared very quickly. Last June, Block.one, the crypto company behind the EOS blockchain, agreed to pay $ 27.5 million in a class action lawsuit. The lawsuits were related to the $ 4 billion ICO.

An image from Coinmarketcap

Crypto Crash 4: dYdX (DYDX)

The cryptocurrency dYdX is a token on a decentralized exchange bearing the same name. The DYDX price reached its highest record of $ 27.86. Right now, DYDX is trading at $ 2.21 after falling 92.1%.

The decline in value from the highest record occurred in September 2021 and is partly due to China restricting crypto trading. During this time, however, trading volume on the stock exchange continued to rise, exceeding the $ 10 billion mark.

The sharp increase in trading volume for dYdX is a direct result of the Chinese government’s actions against the crypto sector. China introduced a new rule according to which any person or company that allows trading in digital assets in the country is breaking the law.

The tightening of restrictions meant that many companies in the sector, including central exchanges, reduced and eventually suspended their services in the Chinese market. As a result, customers were looking for new alternatives, such as dYdX.

dYdX is a decentralized stock exchange and therefore has no customer funds. Transactions are performed on Ethereum using smart contracts. To avoid the high gas charges on the main network, dYdX uses a Layer 2 solution from StarkWare.

In April this year, the token suffered a major setback when Binance removed the currency pair dYdX and Ethereum from its platform.

An image from Coinmarketcap

Crypto Crash 5: LooksRare (LOOKS)

LooksRare (LOOKS), the original symbol of the NFT marketplace of the same name, reached its highest record on January 20 this year. At the time, the LOOKS price was $ 7.10. The price has since fallen 91% and the token is currently trading at $ 0.64.

LooksRare emerged out of nowhere earlier this year and grew to become the closest competitor to OpenSea, the main marketplace for Non Fungible Tokens (NFT). However, there were doubts about the astronomical transaction volumes that are said to come from the new platform.

An image from Coinmarketcap

There have been some laundry transactions on the platform. Users buy and sell NFTs between their own wallets, giving the impression that the platform processes large volumes of transactions.

Analyst firm Crypto Slam announced on January 31 that it had identified more than $ 8.3 billion in laundry deals on LooksRare. These events eventually led to the token being written off.

A picture from Twitter

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