The cryptocurrency industry has experienced several major events known as "black swans" in history, which have severely impacted the trust and price volatility of the cryptocurrency market. The following are six famous black swan events:
1. February 2014: Mentougou Incident
At that time, MTGOX, the world's largest Bitcoin exchange, was hacked and about 850,000 Bitcoins were stolen, accounting for 7% of the total supply of Bitcoin. This incident caused the price of Bitcoin to plummet by 80% and triggered a crisis of confidence in the entire market. Many investors suffered huge losses, and this incident was considered a major blow in the history of cryptocurrency.
2. September 4, 2017: ICO ban
The Chinese government issued a blanket ban on initial coin offerings (ICOs) in September 2017 and required exchanges to shut down. The policy caused 80% of the market value to evaporate, triggering panic selling by investors and severe volatility in the cryptocurrency market.
3. March 12, 2020: Ethereum plummets
Known as "Black Thursday", on March 12, 2020, the global financial market was shaken violently, the price of Ethereum plummeted to below $80, and market panic spread. This incident exposed the high volatility and liquidity problems of the crypto market.
4. May 19, 2021: Contract liquidation
The cryptocurrency market suffered a massive sell-off, with 600,000 cryptocurrency contracts liquidated overnight and investors suffering heavy losses. This incident once again highlighted the huge risks of high-leverage trading and the instability of the market.
5. May 2022: Terra (LUNA) crashes
The collapse of LUNA and its algorithmic stablecoin UST triggered a crisis in the decentralized finance (DeFi) sector, with the price of LUNA plummeting from hundreds of yuan to zero. This incident has caused turmoil in the entire cryptocurrency market and has had a profound impact on investors and related projects.
6. November 2022: FTX collapses
FTX, one of the world's largest cryptocurrency exchanges, went bankrupt due to a liquidity crisis and financial opacity, causing widespread panic in the market. The incident has once again put the cryptocurrency market at risk of a crisis of trust, with billions of dollars of investment involved, and has far-reaching consequences.
These black swan events have hit the market hard 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.
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