Every year there are big winners and losers in crypto. This year was no different, here are a few dramatic standouts.
Algorithmic stablecoins were a novel, promising concept during the bull market. The Terra ecosystem rose to new highs based on this hype. However, the flawed design of TerraUSD , now known as TerraClassicUSD , aided by the reckless decision-making of Kwon, led to its eventual downfall.
According to the authorities, FTX and Alameda funneled funds to each other, and the two firms were also involved in the embezzlement of customers’ funds. Alameda used FTX funds to loan billions of dollars to other firms. FTX, on the other hand, used nonexistent in-house projects with inflated valuations as collateral to take out significant loans. The whole Ponzi came crashing down in November.