Major cryptocurrency enterprises have been brought to its knees by the crypto winter. Significant businesses like Celsius Networks and Three Arrows Capital have declared bankruptcy. The market for cryptocurrencies is experiencing a downturn that seems to never end, much like the recession of 2008–2009. The crypto markets crashed by $2 trillion during this recession. Crypto winter has caused the market to see an unheard-of decline, with even well-known brands like Bitcoin plummeting by 70% as of this July. The cryptocurrency market has seen crashes like this before; one such incident occurred in 2017. The 2022 crash is distinct from the 2017 catastrophe in that it is brought on by macroeconomic causes. Since cryptocurrency businesses rely on loans from one another, the 2022 crash has been spreading from one company to another. According to CoinGecko, the crypto market has had its worst year ever as a result of the meltdown, falling by 60% to around $920 billion in 2022.
Insider Monkey selected 10 cryptocurrency companies hit by the recent crash. Over 800,000 customers can use the bitcoin loan and investment services provided by Vauld, a Singapore-based business. The company stopped accepting payments and withdrawals for all customers on July 4th, indicating that it is one of the many cryptocurrency businesses affected by the recent crisis. Since June 12th, investors have taken $197.7 million out. An American cryptocurrency lender called Voyager Digital primarily services clients in the US and Canada. On loan to another unsuccessful cryptocurrency investor, the business lost almost $650 million. The company currently has $1.3 billion in crypto assets on its platform, along with $110 million in cash. The stablecoin TerraUSD was developed by Terraform Labs and is no longer tied to the US dollar. Due to this, Terra Luna crashed, which caused a significant sell-off in the cryptocurrency market. The business has introduced a new coin, Luna 2.0, in an effort to mount a comeback. Crypto hedge fund Three Arrows Capital is situated in Singapore. On June 29, the company declared bankruptcy, reneged on a $650 million loan repayment to Voyager Digital in June, signaling financial difficulties and sending the cryptocurrency market into a tailspin. A crypto business called Celsius Network is American and Israeli. In June, it stopped all transactions and withdrawals on its network. After cryptocurrencies like Bitcoin, Ether, and even Celsius Network’s own token, CEL, fell sharply, withdrawals were prohibited. Additionally, the company let go of around 25% of its workforce. For more details, click 10 Crypto Companies Hit By The Recent Crash.
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