Written By: Colin Wu

1. FTX crashed and contagion

There is nothing more important for the industry in 2022 than the collapse of the FTX, where SBF suddenly degenerated from being a builder of a huge ecosystem and a star favorite in the eyes of regulators and traditional capital into a deranged, fraudulent and even drug-addled criminal. Fortunately, it could not deceive any more people; badly, it was not exposed earlier.

In summary: What is the real reason for the collapse of the FTX empire?

2. The Ethereum Merge Is Done, L2s is thriving

Ethereum’s successful, smooth transition from POW to POS also unshackles Ethereum. L2 has secured huge funding and is thriving. But as Ethereum became dominant, regulatory pressure began to loom large. Friction with regulation has increased in the DeFi sector.

Panel: Reasons for the Smooth and Successful POS Upgrade of Ethereum

3. Terra Eco and 3AC crashed

Similar to FTX, Terra went from being a star blockchain, to being shouted down by everyone, in maybe 24 hours. It collapsed at the same time as the leading investor and top star VC in the industry, Three Arrows Capital. Many people lost their money in the collapse of Terra and 3AC. And their founders seem to have plans to back.

Multi-Party Analysis: Reasons for the drop in the crypto market and The Future of Terra Eco After Being Out of Control

Arthur Hayes: Number Three

4. BAYC acquires CryptoPunks and Meebits

Bored Ape’s success and exploration in the NFT space has created a proven, new business model for those who came after. But its market cap is too concentrated in the NFT space has also led to some questions.

BAYC Acquires CryptoPunks and Meebits: The end of the PFP NFT?

5. Justin Sun acquired Huobi

Huobi drama has finally come to an end. After Justin Sun acquired Huobi, Huobi entered a new stage. As one of the most powerful men in the Chinese-speaking crypto world, it will be interesting to see where Justin takes Huobi in 2023. On the other hand, Sun’s aggressive, Chinese-language marketing style adds a twist to the relatively flat domestic regulatory landscape in 2022.

Exclusive: The real buyer of Huobi is Justin Sun, possibly with the help of SBF

6. Cryptocurrency a Flashpoint in Russia-Ukraine Dispute

There is no bigger event in the world this year than the Russia-Ukraine war. With Vitalik leading the charge, the crypto world at one point accounted for 1/2 of the donations to Ukraine, and on top of that, global regulatory authorities began imposing sanctions on Russia in areas involving cryptocurrencies. The convergence of the crypto world and the real world, for better or for worse, was also highlighted in the Russia-Ukraine dispute.

Crypto Donation and Payment Become Flashpoints in Russia-Ukraine Conflict

7. StepN’s explosion and silence

After Axie, StepN, built by a Chinese team, became a phenomenal application, bringing a new paradigm to GameFi. At one time, domestic WEB2 entrepreneurs entered the game. But due to the influence of the team itself and the external environment, StepN did not get out of the Ponzi cycle and finally became short-lived. But more entrepreneurs improved on its model and launched new projects.

Internal report about StepN: The temptation to wrestle with the death spiral

8. Fed rate hiking

The association of cryptocurrencies with the Nasdaq and the Fed continues to grow. The Fed’s rate hike has also led to a sharp downward turn in the overall market this year. It is widely expected that the Fed may turn in the middle of next year. Cryptocurrencies used to be primarily cyclical with Bitcoin halving. However, as the volume expands and institutional holdings increase, it will be interesting to see if it will continue to resonate with Nasdaq and Fed policy next year.

How will the crypto move in this rate hike cycle？

9. Layoffs in bear market, exchange rug

According to Wu statistics, in this year’s bear market, the crypto industry has laid off more than 10,000 people. In the Chinese world, second-tier exchanges or institutions such as AEX,Hoo, ZB and Babel rug or went bankrupt, causing some losses for investors. But compared with the fury of big Western institutions such as FTX Genesis Blockfi, Chinese-speaking firms are holding their own during the bear market.

10. Tornado sanctions

U.S. regulation continues to increase, with the most significant event in 2022 being the U.S. sanctions against the cryptocurrency mixer Tornado, whose developer was even arrested in the Netherlands. In addition, the U.S. arrested Coinbase employees suspected of insider trading; The arrest of Bitfinex’s multi-billion dollar hackers has shaken the industry.

Timeline and reactions of Tornado Cash being sanctioned by the United States

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