The cryptocurrency sphere has experienced multiple significant events known as 'black swans,' which severely impacted market trust and price volatility. Below are six notable black swan events:
1. February 2014: Mt. Gox incident
At that time, the world's largest Bitcoin exchange 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% plunge in Bitcoin prices and triggered a trust crisis in the entire market. Many investors suffered significant losses, and this event is considered a major blow in the history of cryptocurrency.
2. September 4, 2017: ICO Ban
The Chinese government issued a comprehensive ban on Initial Coin Offerings (ICOs) in September 2017 and ordered exchanges to shut down. This policy led to an 80% evaporation of market capitalization, triggering panic selling among investors and causing severe volatility in the cryptocurrency market.
3. March 12, 2020: Ethereum Plunge
Known as 'Black Thursday,' on March 12, 2020, global financial markets experienced severe turbulence, with Ethereum prices plummeting below $80, spreading panic across the market. This incident exposed the cryptocurrency market's high volatility and liquidity issues.
4. May 19, 2021: Contract Liquidation
The cryptocurrency market has experienced a massive sell-off, with 600,000 cryptocurrency contracts liquidated overnight, resulting in heavy losses for investors. This event once again highlights the enormous risks of high-leverage trading and the instability of the market.
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, filed for bankruptcy due to a liquidity crisis and financial opacity issues, triggering widespread panic in the market. This event once again put the cryptocurrency market in a trust crisis, with billions of dollars of investments involved, having far-reaching effects.
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.
