Comprehensive review of 2022: a watershed moment for the encryption industry
I still remember that when we reviewed "312" in 2020, the encryption industry only took 24 hours to complete the process of deleveraging, and the health factor was adjusted to normal to welcome 2021. But for the same deleveraging, we spent a whole year in 2022, and the ending was much more tragic than 312.
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January
Curve war
Curve, as an AMM that focuses on low slippage, issues governance Token CRV as an incentive to provide liquidity, thereby increasing the liquidity depth of the various pools on the Curve platform and maintaining the peg ability of Suan. However, Curve has a very key mechanism that makes it very different from traditional liquidity mining: by locking CRV, liquidity providers (LP) can obtain veCRV correspondingly, which has a significant impact on the liquidity incentives of the Curve platform The actual meaning of governance has the power to change the "Gauge Weights". This is also the reason for the Curve War.
The Curve war in January was very exciting. In order to win the war, many projects increased APY and organized new wars, which also made the users who participated at that time get a good profit.
DeFi 3.0
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February
The largest cryptocurrency theft in history
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Facebook's pre-Metaverse struggles
As a Stablecoin project that has attracted worldwide attention, Libra is really ill-fated. The beginning is the pinnacle, from the vision of changing the global payment system under the ecology of a super social network, to now having to be sold, in the middle experienced supervision, renaming, and the withdrawal of many partners, until February this year, we really Say goodbye to Libra.
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Rich Jump crypto
Hackers are also taking money from the market in 2022 in various ways that we have seen or have not seen. The attack on Wormhole, a well-known cross-chain protocol, lost 120,000 ETH, amounting to about $326 million. This stolen number can also be ranked in the Top 5 in 2022. But what is even more surprising is that two days later, Jump Crypto announced that it had filled the hole and invested 120,000 ETH to make up for the stolen loss of Wormhole and support the continued development of Wormhole.
The dispute between the EOS community and B 1
EOS, which once set a record in the history of cryptocurrency financing, also had a voice in February, and the community and EOS parent company Block.one finally tore openly. Yves La Rose of the former EOS node EOS Nation became the leader of the new community organization EOS Network Foundation, negotiating with Block.one on behalf of the community, but until now there is no clear result.
March
Ukrainian Airdrop
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AC back off
AC, Andre Cronje, presumably this name is already familiar to everyone in the encryption industry. The person who pushed the 2020 DeFi Summer to a climax with his own power announced on March 6 that he would withdraw from the circle and would no longer continue to make contributions to the DeFi and Crypto fields. YFI, Fantom, etc. dived to pay tribute at the same time.
Whether AC will come or not, we are not sure, but his phrase "Crypto is dead, Crypto will live forever" will definitely be repeated, chewed by the encryption spirit and encryption culture.
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Of course, STEPN, the leader in the Web3 field, did not appear until 2022, but the IEO announced on Binance on March 1 was an absolute turning point for STEPN. In a market that could not find a new direction, STEPN’s GMT opened on Binance with 17 times earnings, and then pulled from $0.1 all the way to $4, which shocked people inside and outside. It is no exaggeration to say that STEPN has led the concept of Web3.
Axie Stolen, Shocking Numbers
This is one of the most outrageous theft incidents this year. One of the most serious attacks this year, Ronin, the self-developed side chain of GameFi leader Axie Infinity, was attacked. 173,600 ETH and 25.5 million USDC were stolen, worth $625 million. ,one. What's outrageous is that the official found out that it was stolen 6 days before the official announcement, but they never said it, and it took 6 full days to announce it.
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On March 14, Do Kwon, the founder of Terra, bet on whether the price of LUNA can exceed the current price of $88 in a year's time with encryption KOL Sensei Algod on social platforms (Do Kwon bet that LUNA will exceed the current price). Both parties invited another KOL Cobie to testify, and each sent Stablecoins worth one million dollars to Cobie's designated address. The relevant funds were credited to the account at that time, and the bet took effect immediately.
Unexpectedly, within a year, everyone would know the outcome of this bet. I still didn't expect that it wasn't just the two of them who participated in the bet, each of us participated.
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LUNA is in full swing
April 2022 is the April of LUNA. At that time, I thought it was in full swing, but it was the climax of the final chapter of the song. The 20% annualized Anchor has boosted the market value of UST and LUNA to 40 billion US dollars, and the market value of LUNA has also directly reached the top five in the market value of cryptocurrencies. In order to maintain the stability of UST, the LUNA Foundation took over Grayscale's Pixiu banner and bought 42,000 bitcoins as reserves within a few days, becoming the seventh largest holder of bitcoins in the world. Emotions have been brewing, they really want to make the most successful decentralized stablecoin in the crypto world, but unfortunately they are a little bit short.
May
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May 2022 is the final chapter of LUNA's $40 billion financial music. Like the rest after the treble, the story of LUNA came to an abrupt end. It took only two days for the world's second largest public chain to collapse from UST's slight de-anchoring to the market's extreme panic and liquidation evacuation.
The specific process is basically familiar to everyone. At that time, everyone was just amazed at the fall of the top 5 in the world, and did not pay attention to the words of the founder of LUNA, "If luna fails, it will be the failure of cryptocurrency."
Justin Sun launches USDD
Before the collapse of LUNA, there was another episode, that is, Sun Ge’s algorithm Stablecoin USDD was launched. This is just one of Sun Ge’s many projects. Like JST, USDJ, etc., Sun Ge continued to expand his family bucket.
June
OP was stolen, operated by God
On June 9, Optimism, the leader of Layer 2, announced its own show operation. Due to communication and technical errors in the cooperation with the cryptocurrency market maker Wintermute, the 20 million OPs sent by the Optimism Foundation to Wintermute were directly sent to the wrong Layer 1 address, and then the 20 million OPs were controlled by hackers. As the favorite general of the Ethereum Foundation and the leader of political correctness, it is outrageous that OP can still make such a mistake that only a novice may make.
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After LUNA, the encryption world ushered in the thunderstorm of Three Arrows Capital. Three Arrows Capital, which had a management scale of up to 18 billion U.S. dollars, firmly believed in Supercycle, and built Solunavax with real money, also collapsed due to liquidity exhaustion. The thunderstorms and unanchoring of LUNA, GBTC, and stETH made Three Arrows one of the dominoes. In June, none of us could have imagined that behind Three Arrows there was a larger organization that fell in the long river of history.
July
V God Releases Updated Ethereum Roadmap
In July 2022, the market finally took a breather after continuous thunderstorms. Vitalik announced the latest Ethereum roadmap at the Ethereum community meeting, showing the industry the final form of the strongest decentralized ecological network in the future .
Aptos announces another round of financing
This is the ultimate expression of the separation of the primary and secondary encryption markets in 2022. The secondary market has no waves, while the pursuit of star projects in the primary market has reached the extreme. A new public chain with a valuation of 3 billion US dollars is very similar to 2018 .
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Over 9,000 Solana wallets stolen
The August theft is also one of this year's outrageous hacking incidents. The scale of the stolen funds is not large compared to other incidents, but what is outrageous is that the reason for the theft has not yet been determined. For other attacks, the cause of the attack was basically determined at the same time as the event was fermented, but the reason for the large-scale theft of Solana that lasted for several days has not been found. Even at that time, everyone began to suspect that there was something wrong with the bottom layer of the Solana network.
He Yi returns to take control of Binance Labs
A long time no-show in the industry has returned to take control of Binance Labs, becoming the leader with over 200 portfolio projects and $7.5 billion in assets under management. The No. 1 customer service back then was active again, speaking out, answering questions, and clarifying rumors in the community many times.
Li Lin exits, Sun Ge serves as Huobi Global consultant
Not halfway through August, Bloomberg disclosed that Li Lin, the founder of Huobi, was seeking to sell his majority stake in the trading platform at a valuation of US$3 billion. At that time, it was rumored that Sun Ge had conducted preliminary negotiations, which was subsequently denied by him.
However, judging from the follow-up development of the incident, Sun Ge is indeed in charge of Huobi after the change of ownership. The internal meeting shouted "Enable HT", and the high-level executives changed a lot. Sun Ge is already the manager of Huobi in name.
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This is the most severe sanction in the history of cryptocurrency. The Ethereum mixing platform Tornado Cash has been included in the SDN List (Specially Developed by the United States) by the Office of Foreign Assets Control of the US Department of the Treasury (OFAC). national list). The Ministry of Finance justified it, saying that Tornado Cash has been used to launder more than $7 billion since its establishment in 2019, which is a necessary measure to fight crime.
This is the first time in history that an agreement has been sanctioned. Even though encryption fans holding high the banner of "technical innocence" silently resisted by maliciously polluting addresses, Tornado still suffered devastating losses, and was banned by multiple protocol front-ends. Arrested, code pulled from GitHub, website domain blocked, etc.
Tornado under the iron fist has aroused heated discussions in the encryption community: Is the encryption world adhering to the spirit of decentralization capable of dealing with centralized attacks? Likewise, even the ethereum network has been implicated in a regulatory crisis. For the first time, doubts have been raised about the inherent censorship resistance of the blockchain. Vitalik publicly responded that if the supervisor reviews Ethereum through the verification node, it will be regarded as an attack on Ethereum, and chooses to destroy the node through consensus.
September
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September is destined to be the most watched and anticipated month of the year. At 14:43 on September 15th, Ethereum successfully completed the merger of the main network and the beacon chain, marking the elimination of Ethereum's proof of work (PoW) and the complete transition to proof of stake (PoS). Since the "transitional PoS" appeared in the 2014 Ethereum white paper, the community has been waiting for this moment for eight years.
V God praised that "the merger is an important moment for the Ethereum ecosystem." According to its updated roadmap released on November 5, the vision of Ethereum will never stop here, breaking through the unsolvable "impossible triangle", and the entire encryption world We will continue to witness and create countless miraculous moments together.
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The concept of soul binding was just fledgling, and the concept proposed by V God himself took the lead. The digital version of his ten-year anthology "Proof of Stake" was minted in the form of SBT (Soul Binding Token) NFT.
In the same month, BNB Chain soul-bound Token BAB was launched, and several projects such as ApeSwap announced that they would provide exclusive benefits for BAB Token holders. As of press time, the total effective minting of BAB has exceeded 540,000, which is probably the number of crypto users who are still active in the bear market.
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BNB Chain Official Bridge Hacked
The largest on-chain attack in crypto history occurred in October, with a staggering $718 million in losses. However, the rapid recovery in 9 hours, the almost stable currency price of BNB, and CZ’s statement that the incident was under control throughout the whole process, once again made the BNB Chain team face doubts about “over-centralization”. The meme about CZ's excessive power swept the crypto community, but a month later, we found that CZ has already represented the industry.
Aptos Airdrop Detonated "Mao Hair Craze"
On October 18, the much-anticipated Aptos announced the official launch of the mainnet "Aptos Autumn". Aptos officially airdropped more than 20 million APTs to more than 110,000 community users. Many scientists immediately announced their graduation from Web3.
In a bear market, such a hard-core airdrop has aroused infinite FOMO sentiment in the community. Overnight, the encryption community started fancy introversion, pouring into various projects that have not yet issued coins. The Move-based public chain Sui, also built by the Facebook team, has undoubtedly become the focus of attention, and its official Discord has not recovered after 24 hours of downtime. At the end of December, the Sui Foundation reiterated that there is no airdrop plan.
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Musk entered Twitter with the washbasin in his arms, and the half-year-long acquisition finally ended with $44 billion. He said that he wanted to make Twitter the most accurate news source in the world, so Twitter ushered in a number of reforms and large-scale layoffs. But it seems that Chief Twit is not easy to deal with. Not only has the authentication fee of $8 been criticized repeatedly, but it has also been voted "should resign" by users. In December, Musk said he would resign when a successor was found and would instead manage Twitter's software and server teams.
zkSync 2.0 mainnet launch
Q4 in 2022 is the ZK Season, and the ecology will expand rapidly after the zkSync 2.0 mainnet goes live. Its development company, Matter Labs, closed a $200 million funding round co-led by Blockchain Capital and Dragonfly, bringing its total funding to $458 million. According to the zkSync roadmap, milestone events will occur in Q1 and Q2 in 2023. How will the "Layer 2 battle" between ZK and OP proceed? Looking forward to next year.
November
Hong Kong government embraces Web3
On the first day of November, the Hong Kong Special Administrative Region Government announced the "Hong Kong Virtual Assets Development Policy Declaration", for a while, the discussion on whether Hong Kong can become the "future Web3 center" ignited people's infinite longing and imagination in the bear market. The Hong Kong government continues to release positive signals to the encryption industry and practitioners, and the Twitter Space is full of ambitions for people to devote themselves to building.
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It's a pity that the FTX thunderstorm happened immediately. It took only 3 years for this trading platform to stand out from the crowd, and the speed of its decline is beyond everyone's expectations. A balance sheet from a few months ago, delayed response, CZ’s tweet, Binance announced the acquisition and turned back, the market found that FTX had a liquidity gap of up to 8 billion US dollars, FTX filed for bankruptcy and reorganization, and the speed of the plot reversal So fast that no one has a chance to breathe.
This is a disaster, a disaster with no survivors. Within 3 years, SBF and FTX have touched almost every corner of the industry. Their destruction almost uprooted the industry. As much praise as SBF has received in 3 years, there will be as much abuse in November until the industry recovers.
The collapsed FTX is still the fuse of a series of bankruptcies and FUD incidents. The former encryption giants went bankrupt one after another like dominoes, and the entire encryption world was shrouded in panic. Perhaps FTX came too suddenly, and the market began to compete to predict the platform of the next thunderstorm, so as to buffer it in advance. But the ripple effect is unstoppable: DCG and its subsidiary Genesis have problems one after another, some businesses have to be suspended, and even the world's largest encrypted lending platform has rumors of filing for bankruptcy; BlockFi and others have filed for bankruptcy and reorganization, etc.
Genesis, the world's largest encrypted lending platform, suspended withdrawals. What happened?
One of the functions of the blockchain is to reduce the cost of trust, and in 2022, we will also remove trust while deleveraging. A financial empire of tens of billions of dollars can be disintegrated within 2 days.
The rebuilding of confidence is not a matter of a day or two, we can only wait. Hopefully 2023 will allow us to find the lost spirit of encryption, shout "Long Crypto".
