10 Most Embarrassing Crypto Market Moments in History
NAIROBI (CoinChapter.com)—The crypto market, while revolutionary, has had its share of embarrassing crypto market moments. From Bitcoin Pizza Day to multi-million-dollar hacks, the industry’s growing pains have been publicly visible, often with costly consequences.
1. World’s Costliest Pizzas
Bitcoin Pizza Day, celebrated on May 22, marks the first recorded use of Bitcoin in a real-world transaction. In 2010, Laszlo Hanyecz, a Florida-based programmer, spent 10,000 BTC on two pizzas. At the time, the total value of those Bitcoins was around $41.
Today, with Bitcoin valued at approximately $58,000 per coin, the same amount would be worth over $580 million.
Laszlo Hanyecz offers 10,000 bitcoins for pizzas, marking a key crypto milestone. Source: Bitcointalk
The deal was arranged on Bitcointalk, where Hanyecz offered to trade 10,000 Bitcoin for two pizzas. A forum user agreed and ordered the pizzas in exchange for the cryptocurrency. Hanyecz saw it as a major step for Bitcoin, proving it could be used as real currency.
Laszlo Hanyecz with the pizzas bought for 10,000 BTC in 2010. Source: X
Despite the astronomical current value of those Bitcoins, Hanyecz expresses no regrets, noting that it was a necessary step in Bitcoin’s history.
At the time, he had been experimenting with mining Bitcoin and even developed a program to enhance GPU mining efficiency. For Hanyecz, the transaction symbolized Bitcoin’s potential, though its true value only became evident in the following years.
2. Mt. Gox Hack (2014)
At its peak, Mt. Gox was the world’s largest Bitcoin exchange, handling over 70% of global trading volume. However, the platform’s collapse in 2014 remains one of the most notorious events in crypto history, with hackers stealing 850,000 BTC.
After the attack, Mt. Gox declared bankruptcy, sparking a lengthy compensation process. Adding to the infamy, the exchange’s name, Mt. Gox, originally stood for “Magic: The Gathering Online eXchange,” a platform designed for trading game cards before pivoting to Bitcoin.
MtGox Co., Ltd. Notice on BTC and BCH Repayment to its Creditors. Source: Mt. Gox Rehabilitation Trustee
In July, the exchange began distributing funds to creditors, marking a long-awaited step in the recovery process for those affected by the collapse.
Former Mt Gox CEO Launches ElliPX Exchange. Source: Mark Karpeles 
Former Mt Gox CEO Launches ElliPX Exchange.
Mt. Gox’s former CEO, Mark Karpeles, is now preparing to re-enter the crypto space with a new trading platform, EllipX, based in Poland. Given the historical baggage surrounding Karpeles and Mt. Gox, the revival effort is seen as a bold move.
3. The DAO Hack (2016)
The DAO was supposed to revolutionize decentralized organizations, but hackers exploited a vulnerability and stole $60 million. As a result, the Ethereum community’s subsequent hard fork to reverse the damage caused a rift between Ethereum and Ethereum Classic, and the saga felt like a messy, public spat.
TruthLabs probes Ethereum’s ICO origins and Silk Road connections. Source: X
Blockchain analyst TruthLabs, backed by former Ethereum advisor Steven Nerayoff, recently accused the Ethereum Foundation of deeper involvement.
Additionally, TruthLabs claims core Ethereum team members may have played a role in the DAO hack and other major exploits. The analysis also links Ethereum’s original funding to Bitcoin wallets tied to Silk Road and Mt. Gox hacker Ross Ulbricht.
4. Ethereum Foundation Sells at the Top (2017)
In 2017, the Ethereum Foundation sold 70,000 ETH at the market peak, securing $100 million in liquidity. Vitalik Buterin revealed he convinced the Foundation to sell during Ethereum’s run when the price was around $1,400. While financially savvy, the sale frustrated retail investors as the market crashed shortly after.
In an interview with Eric Weinstein on The Portal podcast, Vitalik Buterin revealed:
“I did get the Ethereum Foundation to sell 70,000 ETH like basically at the top, and that’s doubled our runway now, so it was one good decision that had a lot of impact.”
Vitalik Buterin on selling 70,000 ETH at the 2017 peak, on a podcast in 2019. Source: YouTube
Buterin also sold 30,000 ETH, worth about $22 million. He later expressed relief at the price drop, saying the crypto industry hadn’t created enough value to justify the high prices. Although no insider knowledge was proven, many speculated the Foundation anticipated the crash.
Retail investors felt betrayed by the timing of the sale and questioned its motives. The event remains controversial and highlights retail traders’ risks when large players make strategic moves.
5. Bitconnect Collapse (2018)
Bitconnect promised returns of up to 40% per month through its lending platform. Investors were told to lend their Bitcoin in exchange for Bitconnect Coin (BCC), which claimed to grow through a “Trading Bot” and “Volatility Software.”
However, by 2017, Bitconnect’s market cap reached $3.5 billion, attracting many hopeful investors.
In 2018, the project collapsed. Regulators exposed it as a Ponzi scheme, and the lending program was abruptly shut down. Once valued at $463, BCC plummeted to nearly zero, leaving investors with worthless tokens. Billions were lost as Bitconnect became one of the most infamous crypto scams.
BitConnect saga and its infamous meme. Source: Daniel Sempere Pico
Adding to the embarrassment, Carlos Matos’ over-the-top performance at a Bitconnect promotional event became a viral meme. His enthusiastic “BITCONNEEEEECT!” shout remains one of the most cringeworthy moments in crypto.
In Feb. 2022, a federal grand jury in San Diego, Bitconnect founder Satish Kumbhani was charged with fraud, price manipulation, and operating an unregistered money transmission business. He is currently on the run and faces up to 70 years in prison if convicted.
6. “Rat Poison Squared” Bitcoin Comment by Warren Buffett (2018)
In 2018, Warren Buffett called Bitcoin “rat poison squared,” a comment many in the crypto space laughed off. Bitcoin did see a dip soon after, but long-term performance tells a different story.
Warren Buffett calls Bitcoin ‘rat poison squared’ in 2018. Source: Becky Quick
If someone had invested $1,000 in Bitcoin when Buffett made that remark, they would have purchased about 0.1004 BTC. Today, that investment would be worth $5, 671 showing a return of over 467.1%. In comparison, the same $1,000 invested in Berkshire Hathaway would have grown by just 105.6%, while the S&P 500 would have increased by 91.5%.
7. Dogecoin’s Rise and Fall (2021)
Created as a joke, Dogecoin skyrocketed in 2021, reaching a $90 billion market cap—then plummeting. It left countless investors who followed the “to the moon” rally with empty pockets. Even Elon Musk’s tweets couldn’t save it from the embarrassing tumble.
Dogecoin Plumments massively from its 2021 Peak. Source: CoinGecko
Fast-forward to 2024, and the “to the moon” narrative persists despite Dogecoin’s decline. Dogecoin has plummeted 85.2% from its all-time high in 2021.
Musk is ready to serve at the Department of Government Efficiency (D.O.G.E.). Source: X
Even Elon Musk’s once market-moving tweets now struggle to create impact. His Aug. 20, 2024 tweet, humorously mentioning Dogecoin, only caused a modest 3.56% price rise—far from the sharp reactions seen in previous years.
8. Donald Trump Calls Bitcoin a Scam (2021)
In 2021, former U.S. President Donald Trump labeled Bitcoin a scam, claiming it was a threat to the U.S. dollar. The statement came as Bitcoin was gaining traction among institutional investors and government regulators, making his remarks particularly jarring.
Donald Trump called Bitcoin a ‘scam’ in 2021 but embraced it in 2024. Source: X
Adding to the embarrassment was the emergence of Trump-themed cryptocurrencies, such as TrumpCoin, which were seen as opportunistic cash grabs by the crypto community. TrumpCoin and similar tokens quickly fell into obscurity, with traders losing money on what were ultimately speculative projects.
Trump commits to making America the top global hub for crypto and Bitcoin. Source: Bitcoin Magazine
By 2024, Trump shifted his stance, now vowing to make the U.S. the “crypto capital” if re-elected. In addition, he launched World Liberty Financial, a crypto trading platform promoted by his sons. Understandably, critics highlight concerns over the overlap between his political influence and potential personal gain from this venture.
9. Tesla Buys and Sells Bitcoin (2021)
In 2021, Tesla bought $1.5 billion worth of Bitcoin, acquiring around 43,000 BTC. However, Elon Musk then caused a market crash by suspending BTC payments due to environmental concerns. Consequently, it was an embarrassing roller coaster for investors, who initially celebrated Tesla for its Bitcoin entry into crypto.
Tesla’s $1.5 billion Bitcoin purchase in 2021: Bloomberg Technology
Had Tesla held on to its initial 43,000 BTC, the value of the investment would have reached nearly $3.2 billion at Bitcoin’s 2024 high of $73,750. Instead, the company now holds 11,500 BTC, worth about $640 million.
10. Celebrities’ NFT Gold Rush Turns to Dust
Several celebrities, including Lindsay Lohan and Paris Hilton, jumped onto the NFT bandwagon, minting and selling overpriced digital art. However, many of these projects are now nearly worthless, underscoring the extreme volatility in the space.
Once valued at $11.6 million, this NFT owned by Logan Paul is now worth just $3.50. Source: X
One of the most notable examples of NFT collapse is Logan Paul’s purchase of an NFT for $11.6 million. By 2023, that same NFT was valued at just $3.50, underscoring the extreme volatility in the space.
The embarrassing crypto market moments highlight the industry’s volatility and growing pains. From Bitcoin Pizza Day to major hacks and project failures, these events reflect both the industry’s challenges and progress.
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