Crypto 2021 – the year that was: gains and losses of major cryptocurrencies
2021 has been the most incredible year in crypto history. According to PitchBook Data, the total market capitalization of cryptocurrencies reached $ 3 trillion (around Rs 2,25 36,058 crore) in 2021, as venture capital funds injected $ 30 billion (around Rs 2,25 Rs 346 crore) on the market through the year. The top five crypto bullish events of 2021 were:
- In February, Tesla announced the purchase of $ 1.5 billion (approximately Rs. 11,257 crore) in Bitcoin. He also said he would accept Bitcoin payments. This led to Bitcoin’s total market cap to cross $ 1 trillion (roughly Rs. 75.04,768.69 crore) for the first time.
- In March, a non-fungible token (NFT) of “Everydays: the First 5000 Days” by digital artist Beeple (Mike Winkelmann) was auctioned for more than $ 69 million (approximately Rs. 518 crore).
- In April, the Coinbase crypto exchange was directly listed on the Nasdaq stock exchange. Its valuation peaked at $ 112 billion (approximately Rs. 8 40,534 crore).
- In June, the President of El Salvador, Nayib Bukele, announced his intention to make Bitcoin legal tender.
- In September, El Salvador officially adopted Bitcoin as legal tender.
Here’s how some of the best cryptos fared in 2021:
|Cryptocurrency||January 1, 2021
|December 25, 2021
|Bitcoin||$ 29,374 (around Rs. 22.06 lakh)||$ 51,000 (around Rs. 38.30 lakh)|
|Ether||$ 730 (approximately Rs. 54,833)||$ 4,000 (around Rs. 3 lakh)|
|Binance Coin||$ 38 (around Rs. 2,853)||$ 550 (around Rs. 41,308)|
|Solana||$ 2 (around Rs. 150)||$ 190 (around Rs. 14,270)|
|Cardano||$ 0.2 (around Rs.15)||$ 1.5 (around Rs 112)|
|Earth||$ 0.7 (around Rs. 53)||$ 97 (approx. 7,286) Rs.|
|avalanche||$ 4 (around Rs. 300)||$ 116 (approx. 8,709) Rs.|
|Peas||$ 8 (around Rs. 600)||$ 29 (about Rs. 2,178)|
|Dogecoin||$ 0.006 (about Rs 0.45)||$ 0.2 (around Rs.15)|
|Polygon||$ 0.02 (about Rs. 1.5)||$ 2.5 (around Rs. 188)|
In November, the overall cryptocurrency market capitalization crossed for the first time $ 3 trillion (roughly Rs.22536,058 crore).
2021 has been a great year for meme coins, especially Dogecoin and Shiba Inu.
We’ve also seen a flurry of news regarding central bank digital currencies (CBDCs), with China leading the pack.
A major report found that 55 of the world’s 100 largest banks have some form of blockchain or crypto exposure in their wallets.
The wrong side
On the downside, the biggest crypto exchange Binance has suffered a lot of outages and has also faced a ton of legal issues in many countries.
The year also saw a considerable number of carpet draws, hacks and scams. Reuters has estimated that decentralized finance (DeFi) platforms have lost more than $ 10 billion (around Rs.75,047 crore) due to frauds and scams.
Strangest was the massive $ 643 million (around Rs. 4,825 crore) hack on the Poly network. The hacker returned all the funds!
The Squid Game token, which has reached a prize pool of nearly $ 3,000 thanks to coverage from top media like TBEN, TBEN, Business Insider, and more.
One of the biggest scams, $ 3.6 billion (roughly Rs 27,017 crore), was carried out by brothers Raees and Ameer Cajee, who operated South African company Africrypt.
A crypto phishing scam targeted users of the MetaMask and Phantom crypto wallets, and the PancakeSwap cryptocurrency exchange.
The US law enforcement agency, the FBI, has warned of frauds using crypto ATMs and QR codes.
Other losses include:
- MonoX liquidity pool provider: $ 30 million (approx. Rs. 225 crore)
- Decentralized Autonomous Organization BadgerDAO: $ 120 million (approximately Rs. 900 crore)
- DeFi bZx protocol: $ 55 million (approximately Rs. 412 crore)
- AnubisDAO phishing attack: $ 60 million (around Rs. 450 crore)
The Solana Blockchain has had its share of problems. First, it went down for 17 hours and then suffered a Distributed Denial of Service (DDoS) attack.
Bitcoin SV has faced several 51% attacks.
We also saw major crypto crashes in 2021 – Internet Computer (ICP) lost 93% in just over a month, IRON Titanium Token (TITAN) went from $ 52.46 (around Rs. 3,937) to $ 0.00000003 (around Rs. 0.0002) in just 10 days and SafeDollar (SDO), a stable coin suddenly fell to zero.
Two crypto exchanges have collapsed in Turkey. The first was Thodex, whose CEO disappeared with $ 2 billion (around Rs. 15,009 crore) in funds from investors. The second was Vebitcoin, which went out of business after facing “financial pressures.” Two Australian crypto exchanges, Mycryptowallet and ACX, also closed and cost their investors millions.
Rohas Nagpal is the author of the Future Money Playbook and the chief blockchain architect at the Wrapped Asset Project. He is also a retired amateur boxer and hacker. You can follow him on LinkedIn.
Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Cryptocurrency is unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by The Bharat Express News. The Bharat Express News will not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.