Cryptocurrency crash events are always an obsession with the Crypto market. Despite many warnings, it is clear that thefts and incidents still occur, causing heavy financial and emotional losses to investors. Below, Learn Crypto Trading summarizes for you the top 7 biggest crashes and the consequences they bring.
What is a cryptocurrency crash? Impact of crash events on the Crypto market?
Cryptocurrency crash is understood as cryptocurrency incidents, including:
- Big scams
- Thefts
- Crisis events
- Price manipulations cause market fluctuations
These incidents have a significant impact on investors as well as the entire market. Many traders even lost everything after the Crypto crash.
Crypto incidents create major crises in the market. Investors have to face the risk of losing money and losses. The decentralized market lacks safety and security. User confidence is greatly shaken.
After each Crypto scam, transactions on the market clearly decrease in quantity and quality. At this time, Cryptocurrency prices are also unprecedentedly low. Investors became confused and worried. It takes a lot of time for them to regain psychological balance.
Top 7 biggest Cryptocurrency crashes in history
According to history, Cryptocurrency crash events are becoming increasingly larger. Fraudsters and thieves have increasingly more sophisticated tricks. Developing technology helps secure cryptocurrency better, while also providing more effective tools for bad guys to attack.
How can you imagine virtual currency crises and virtual currency thefts? Here are the 7 biggest incidents to date:
MT GOX 2011 – 2014: The first shock of the Crypto market
This Cryptocurrency crash event took place from 2011 to 2014. In less than 3 years, more than 850,000 Bitcoins were stolen on the MT GOX exchange.
MT GOX exchange said that due to a basic error in Bitcoin, many accounts were stolen. That is the cause of the crisis in the Crypto market. However, many experts and investors discovered that the exchange’s private keys themselves had been compromised. The company doesn’t even use any technology to control and detect incidents when theft occurs.
Linode 2011: Horrifying crypto news
Linode is a web hosting company and it is widely used by the community to store hot wallets containing coins. In June 2011, this platform was attacked, a series of hot wallets were targeted, resulting in more than 46,000 Bitcoins being stolen.
The biggest loss is Bitcoinia with more than 43,000 BTC lost. Additionally, a BTC developer also lost more than 5 thousand BTC. The remainder belongs to individual users. After this Cryptocurrency crash event, Cryptocurrency trading has been seriously affected. Investors are extremely confused when they do not know where to place their trust to store and ensure the safety of their assets.
See more: What is Crypto? Knowledge about Crypto trading
Cryptocurrency crashes with Bitexchange 2012 incident
This Cryptocurrency crash event took place in May 2012 with more than 24,000 BTC stolen. Although compared to the two previous events, this number is not too much, but the continuous crisis has caused the Crypto market to stagger.
The cause of the incident was determined to be that the attackers gained access to unencrypted wallet keys. Therefore, Bitexchange owner Roman Shtylman decided to close the exchange to ensure the safety of all investors.
Bitfinex big theft 2016: Suspected Crypto scam spread in the community
This Cryptocurrency crash has proven that using multiple layers of keys to enhance security is not necessarily effective. Evidence is that a major theft appeared and evaporated 119,756 BTC in less than 2 weeks. By refusing cold wallets for legal tax exemption, Bitfinex had to pay an extremely high price and shake the trust of users.
This is a serious incident in the crypto market and no small loss for investors. The loss can hardly be overcome in a short time. Many traders even had to go bankrupt because they lost all the money in their accounts.
Ethereum Flash Crash 2017: The event that shook the crypto market
This is a particularly serious Cryptocurrency crash. It hit Ethereum directly, reducing the value of ETH in an extremely short time. On June 22, 2017, the price of ETH reached 300 USD and suddenly dropped to only 0.1 USD in just a few minutes. Initially, experts suspected that it might be due to “sharks” manipulating the market. However, subsequent investigations showed no signs of wrongdoing.
This Cryptocurrency crash caused the value of ETH to decrease by 29.4%. A whole system of more than 800 automatic selling orders was matched, and ETH was traded at a super low level of only 0.1 USD, causing millions of dollars in losses to investors.
Bitgrail 2018: Cryptocurrency crash caused millions of dollars in losses
Bitgrail is known as a small Italian Crypto simple exchange. The exchange specializes in trading new cryptocurrencies, little known to the market. One of them is Nano copper (XNO).
In early 2017, this coin was only worth 20 cents. However, by February 2018, it had reached 10 USD. At this time, a major Cryptocurrency hack incident took place. More than 230,000 people were scammed, and losses amounted to more than 146 million USD.
Coincheck 2018: Crypto news makes waves in the Japanese market
The final top 7 of the Cryptocurrency crash events we mentioned. This is the theft of a large amount of NEM tokens worth 530 million USD in Japan. Coincheck, a famous Japanese brand, was attacked. They believe that it may be due to a shortage of personnel leading to this situation. Hackers may have accessed the exchange’s system and robbed money in hot wallets.
What is the future of Cryptocurrency trading? Is cryptocurrency still “ten gold”?
Despite the Cryptocurrency crash news about crisis, fraud, and theft, it is clear that this market is still growing constantly every day. Of course, when financial conditions change, Cryptocurrency also makes changes to adapt. Along with fiat currencies, many coins have been widely accepted and used in transactions by the community.
The development of blockchain technology is increasingly promising. Financial applications, creative businesses, and potential coin projects therefore also have more living space. The Crypto market also records growth each year. Although there have been many fluctuations, its growth cannot be denied. Crypto has become a real revolution in the field of finance and business globally. Therefore, what traders need to pay attention to is not the Cryptocurrency crash, but choosing reputable and potential projects to invest in.
See more: Open Bybit account: Explore the world of Crypto
Conclude
Above are the top 7 biggest Cryptocurrency crash events that Learn Crypto Trading has compiled from the history of market development. No investment choice is truly certain. But if you know how to learn, choose, and invest wisely, you can completely protect yourself against the traps of fraud and crises. Don’t forget to follow new articles from us to update the latest Crypto news!
FAQs
Are Crypto Crashes Scams?
This term includes scams, thefts, and crises in the cryptocurrency market.
Is storing coins in cold wallets safer than hot wallets, since attacks are mainly on hot wallets?
Not really, what is important is the security of the exchange as well as how the exchange’s access control policies are set up.
Can fraud traps be avoided?
Traders can avoid the risk of scams if they choose a reputable trading platform and are cautious in trading.
