Gate.io Annual Review in 2022
1. The Russian Ukrainian War broke out, and Ukraine received crypto donations [Learn more]
On February 24, 2022, the Russian Ukrainian War officially started. The war is still not over, and its impact on the global market is incalculable, including cryptocurrencies.
A few days after the outbreak of the war, crypto donations flooded in. The Ukrainian government raised BTC, ETH, DOT, and other digital assets worth more than $30 million in three days.
At this moment in 2022, the role of cryptocurrency has more clearly demonstrated the power of “borderless” than ever before. Ukraine is the first country in the world to require the use of cryptocurrencies for donations. In the future, it is believed that more countries will support cryptocurrencies.
2. Metaverse and NFT go viral [Learn more]
At the beginning of 2022, Jay Chou, JJ Lin, Justin Bieber, Jordan, and other celebrities from various fields joined the trend of NFT and web 3.0. Among them, once the “Phanta Bear” NFT by Jay Chou was released, 3000 were sold within 5 minutes, and the whole collection was sold within 40 minutes.
Tencent, Meta (Facebook), Nike, McLaren, Dior, Tiffany, Starbucks, and other brands rushed to the metaverse. Internet, sports, luxury goods, FMCG, and other industry giants were afraid that they would miss the opportunity to go viral, but the wave came and passed quickly. In addition, the Black Swan incident continued to occur, these giants seemed to have paused to inspect the situation. In this economic winter, pursuing “survival” first and then “development” have become the consensus of all enterprises.
3. US Promulgates New Crypto Regulation [Learn more]
On March 9, 2022, under the leadership of Joe Biden, the United States government issued an utive order. The utive order requires the US government to strengthen the supervision of cryptocurrency, and must ensure that the US maintains a leading position in crypto technology.
Based on this, the Biden government is introducing an utive order. The order establishes a national policy covering six important priorities for blockchain assets, including consumer and investor protection, financial stability, financial inclusion, leadership in the world financial , economic competitiveness, and responsible innovation.
4. The largest theft in DeFi history: Ronin lost more than $600 million [Learn more]
On March 29, 2022, Axis Infinity side chain Ronin released a statement indicating that the verifier node was invaded, and 173600 ETHs and 25.5 million USDCs were stolen, with a total value of about $615 million. The theft occurred on March 23, but it was discovered on March 29.
Ronin’s loss value has exceeded $616 million, exceeding $611 million in the theft case of Poly Network in August last year. This case has also become the largest theft case in DeFi history.
5. Terra collapses and the market enters a deep bear cycle [Learn more]
On May 7, 2022, a series of huge selling off made UST instantly depeg and triggered a comprehensive “run”. UST holders were eager to redeem their UST into LUNA tokens, which greatly increased the supply of LUNA and led to the collapse of LUNA. On May 12, the trading price of UST fell to $0.36, while the price of LUNA was almost zero.
Terra was the fuse of the deep bear cycle in 2022, accelerating the outbreak of the liquidity crisis in the crypto market. Terra is the biggest failure of DeFi, and a series of chain effects brought about by its collapse has gradually spread.
6. 3AC, Voyager, Celsius and various crypto giants are in a liquidity crisis [Learn more]
On the evening of June 12, the crypto lending platform Celsius prompted the user that the platform suspended withdrawal. Since Celsius invested in Terra, with the collapse of Terra, the investment of Celsius also went to waste.
After the announcement of the bankruptcy of Celsius, rumors about the bankruptcy of Three Arrow Capital began to circulate. Babel Finance, Voyager Digital, BlockFi, and other crypto companies were also involved in the Terra incident. The ensuing negative news gradually pushed the entire crypto market to the freezing point. Finally, Three Arrow Capital was also doomed to bankruptcy.
7. Ethereum Merge opens a new era of PoS [Learn more]
On September 15, after years of precipitation and deployment, the expected Ethereum network finally successfully implemented the “Merge”, moving the consensus mechanism of the blockchain from PoW (Proof of Work) to PoS (Proof of Stake).
The Ethereum Merge has greatly improved the economic model of Ethereum and finally turned to deflation. PoS has also improved by 99.95% in energy efficiency and reduced 90% carbon emissions compared with PoW.
8. Hong Kong’s new crypto policy, striving to be the leader of the Web 3.0 world [Learn more]
October 31, a date recorded in history. The Financial Affairs and Treasury Bureau of the Hong Kong Special Administrative Region officially released the Policy Declaration on the Development of Hong Kong’s Virtual Assets, which clarifies the government’s policy stance and guidelines on the development of Hong Kong’s virtual assets industry and eco.
Hong Kong, relying on the historical accumulation of the international financial center, has seized the opportunity of the influx of Web2 technology talents from the mainland to start businesses overseas. Hong Kong may return to the throne of the Asian financial center through the Web3 revolution by making bold breakthroughs in the regulatory framework with the courage to embrace all rivers and take the lead. Let’s wait and see.
9. The domino effect of the FTX event is still spreading [Learn more]
On November 2, Alameda Research, a quantitative asset management company under FTX, was exposed that its balance sheet was unclear, which caused an uproar in the market. On November 6, CZ, Caroline Ellison and SBF staged a public opinion war on Twitter, and FTT prices continued to fluctuate in the public opinion war. Originally, the event seemed to be coming to a successful end on the 7th day, but then CZ first considered the acquisition and finally gave up the acquisition of FTX, which led to the final collapse of the FTX empire.
On December 13, SBF was formally arrested by the Bahamas police and said on December 19 that it was considering extradition back to the United States for trial. The domino effect triggered by the FTX event continues to affect the development of the crypto market.
10. The Federal Reserve’s policy of raising interest rates may be extended to 2023 [Learn more]
On December 14, the Federal Reserve announced an interest rate hike of 50 basis points, stated that it might be appropriate to continue to raise interest rates, and did not consider cutting interest rates until it was convinced that inflation would continue to decline. Federal Reserve Chairman Powell subsequently stated that the interest rate hike will not cause the economy to fall into recession, and it is expected that interest rates will not be cut in 2023. The rate hike announced at the meeting in February next year will depend on economic data.
Presently, the inflation rate in the United States has reached its highest level since 1980, and the benchmark interest rate has reached its highest level since 2008 in eight months. According to the latest economic forecast, the median expected interest rate of the Federal Reserve at the end of next year will be 5.1%, and it will not cut interest rates until 2024.
The whole year of 2022 will be shrouded in the “fear” of the Federal Reserve’s sharp interest rate hike. Global assets will be greatly affected, and the cryptocurrency industry will inevitably be too. It is expected that cash flow is an important issue that cannot be avoided in the development of the crypto industry in the context of monetary tightening in 2023.
Phanta Bear NFTs earn 60 million RMB | “Unspeakable Secrets” Between Jay Chou and Fans
A Cosmic Dream: Shiba’s Metaverse Layout
The Biggest Airdrop in History May Come: Metamask Will Launch A Token Soon
Optimism Airdrop is Approaching, A New Concept of Community Governance Will Emerge
What Is the LUNC Tax Burning Proposal?
FTX Event Tracking | The Crisis is Far from Over, and
DCG Sells off Tokens Crazily, Is Grayscale Crash Coming Soon?
Safety first, user priority. Safeguarding the security of users’ assets is always the foundation of Gate.io. Gate.io is the first top crypto platform to launch 100% margins. 100% margins mean that the platform will not misappropriate users’ assets without permission, and will make every effort to protect the security of users’ assets.
Presently, we are at the bottom of the big cycle of the bear market. The leverage has been basically cleared, and it is mainly a stock game. It is not completely affected by the macroeconomy. Unless there are more serious ic risks, such as market changes caused by regulation, there is limited room for further exploration.
Vitalik Buterin also recently talked about three major opportunities that have not been realized in the crypto field in 2023, which are worth referring to:
More development is needed on the cryptocurrency wallet infrastructure to make it easier for daily use and ensure that it can log in billions of users; It will be a revolution in this industry to develop a stablecoin that can resist hyperinflation and global accessibility against all types of conditions (including on-chain and broader macro-economy); Finally, Vitalik Buterin stated that any technological development that helps Ethereum seize the right to log in from Facebook, Google, Twitter, and other centralized monopolies will eventually enable Ethereum to gain more market dominance in Internet-based applications.
For mainstream value currencies such as BTC and ETH, we may also start to consider reasonable fixed investment configurations. It is estimated that BTC is about $15,000, and ETH is about $1,000 at the bottom of this bear market, and it may be consolidated until the first quarter of 2023, after which a decent rebound will occur.
The Bloomberg analysis article also indicated that the bear market cycle of the macro-economy may push Bitcoin to the key support level of $10,000 and Ethereum to the support level of $1,000. This means that these two cryptocurrencies are likely to fall further. However, as the Federal Reserve turns to loose policy, the two cryptocurrencies are bound to recover.
In 2023, the resistance level of Bitcoin may be $40,000. If the economic rules work, the certainty of halving the supply of Bitcoin, as well as the rising demand and adoption, should drive its price to rise over time.
The year 2022 has become a pastime. Let’s regain our confidence and move forward with Gate.io towards a new crypto future with a beautiful vision for 2023.
