Six Major Black Swan Events in the Cryptocurrency Market, How Many Have You Experienced?
Throughout the history of the cryptocurrency market, there have been several significant events referred to as "black swans," which severely impacted trust and price volatility in the market. Here are six famous black swan events:
1. February 2014: Mt. Gox Incident
At that time, the largest Bitcoin exchange in the world, MTGOX, suffered a hacker attack, with approximately 850,000 Bitcoins stolen, accounting for 7% of the total Bitcoin supply. This incident led to an 80% drop in Bitcoin's price and triggered a crisis of trust in the entire market. Many investors suffered huge losses, and this event is considered a major blow in the history of cryptocurrency.
2. September 4, 2017: ICO Ban
On September 4, 2017, the Chinese government issued a comprehensive ban on Initial Coin Offerings (ICO) and ordered exchanges to close. This policy caused the market's total capitalization to evaporate by 80%, leading to panic selling by investors and severe volatility in the cryptocurrency market.
3. March 12, 2020: Ethereum Crash
Known as "Black Thursday," on March 12, 2020, global financial markets experienced violent turbulence, and Ethereum's price plummeted to below $80, spreading panic throughout the market. This event exposed the high volatility and liquidity issues in the crypto market.
4. May 19, 2021: Contract Liquidation
The cryptocurrency market faced massive sell-offs, with 600,000 cryptocurrency contracts liquidated overnight, resulting in significant losses for investors. This incident again highlighted the enormous risks of high-leverage trading and market instability.
5. May 2022: Terra (LUNA) Collapse
The collapse of LUNA and its algorithmic stablecoin UST triggered a crisis in the decentralized finance (DeFi) sector, with LUNA's price plummeting from hundreds to zero. This event caused turmoil in the entire cryptocurrency market, having a profound impact on investors and related projects.
6. November 2022: FTX Collapse
FTX, one of the largest cryptocurrency exchanges in the world, went bankrupt due to liquidity crises and financial opacity, triggering widespread panic in the market. This event once again plunged the cryptocurrency market into a crisis of trust, with billions of dollars in investments caught up in it, leading to far-reaching consequences.
These black swan events have severely impacted the market at different times, reminding investors of the high risks and uncertainties of the cryptocurrency market, while also prompting the market to pay more attention to risk management and compliance.
