FTX wasn’t the worst loss for crypto

Chainalysis has found that the crypto sector was hit harder by Terra Luna, and also Celsius/Three Arrows than by FTX.

There’s no denying that a series of high profile collapses in crypto over the previous year has hit the sector hard, as well as wiping out or seriously harming many investors.

However, the recent very public disintegration and ensuing bankruptcy of Sam Bankman-Fried’s FTX empire wasn’t actually the worst in terms of the value that was lost according to blockchain data platform Chainalysis.

Source: Chainalysis report

The Chainalysis data suggests that the Celsius/3AC collapses, and the Terra Luna depegs realised much bigger losses for investors than did the FTX collapse.

$20.5 billion was the realised loss for the Terra USD depeg, while Celsius and 3AC came in at a staggering $33 billion between them. In comparison, FTX realised just £9 billion in losses for investors.

It is to be hoped that such egregious and harmful losses will now be firmly in the past for investors. However, given that there are still a few large players trying to keep themselves afloat, future stability for the crypto market looks anything but assured.

For those still in the crypto market for the incredible innovations that have come out of it, and perhaps for the safety raft that the likes of Bitcoin may still provide, it will likely be a case of hodl on regardless. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.