Money
5 Notable Crypto Crashes Of 2021 While crypto continues to make headlines, it remains a volatile and risky investment. According to data from the Federal Trade Commission, Americans lost more than $80 million in crypto scams between October 2020 and March 2021—a 1,000% increase compared to a year prior. The U.K. saw nearly $200 million of crypto fraud in the year to October 2021—30% more than 2020, according to Action Fraud. Here are five of the biggest crypto crashes of 2021.
AnubisDAO Established on October 28, cryptocurrency AnubisDAO went on a 24-hour sale on its set up day. The project reportedly attracted $60 million in a few hours and then suddenly went offline. The invested money was moved to another account and went missing. The value of the token then effectively crashed to zero. A suspected developer of the token claimed in a tweet that they had fallen victim to a phishing attack. Following fraud allegations, Hong Kong and US law enforcement started investigating the case as per media reports , and the developer claimed in a tweet on October 30 to be “cooperating with the police and complying with all investigations.”
Thodex Thodex, an Istanbul-based cryptocurrency exchange founded in 2017, was reportedly able to attract about $2 billion from about 390,000 investors in four years. But in April 2021, Thodex announced that it was halting trading for four to five days to address an abnormal fluctuation in its accounts. However, the company never resumed operations and went offline, leaving thousands of users unable to access their accounts and funds. Thodex founder and CEO Faruk Fatih Ozer reportedly fled the country in April with $2 billion. Turkish authorities are seeking to arrest Ozer on fraud charges, as reported by state-run Anadolu news agency. Ozer denied any wrongdoing in a tweet on April 22. Turkish security forces had reportedly arrested 62 suspects in April in connection to the case and seized Thodex’s computers and equipment. F O R B E S M I D D L E E A S T.C O M
Mark Cuban, billionaire and NBA’s Dallas Mavericks’ owner.
Iron Titanium In mid-June, billionaire and NBA’s Dallas Mavericks’ owner Mark Cuban was “hit” when a cryptocurrency token, named Iron Titanium that appeared in June, crashed from more than $64 to just one cent in less than a day. The collapse began when large investors started dumping their holdings. The crash intensified following a wave of panic selling among smaller investors. “I got hit like everyone else. Crazy part is I got out, thought they were increasing their TVL enough. Than Bam,” said Cuban in a tweet on June 17. The coin traded at less than 0.01 cents as of December 15, 2021.
WhaleFarm Created on June 28, a token named WhaleFarm was trading above $200 on its launch date. Two days later, it plummeted close to zero. The crash was labeled as a “rug pull,” or pump-anddump scheme. The rug pull is a malicious maneuver where developers create a token and hype it on social media platforms to attract investors. Once they draw a significant number of investments, the fraudsters abandon the project and run away with investors’ money. Victims reportedly lost about $2 million and the coin is no more trading in the crypto world.
Squid Game A cryptocurrency token based on but not affiliated with Netflix’s Squid Game series launched in late October 2021, with its anonymous founders claiming that it could be used to pay for an online game that would be launched in November. The coin went on presale in mid-October and reportedly attracted over $3 million in investments. Its value rocketed to more than $2,860, but on November 1, the developers terminated the project and reportedly ran with nearly $3.3 million. Those who had invested in the token lost all their money in just 15 minutes. JANUARY 2022
BY OMAR TAMO ; PHOTO BY DIMITRIOS KAMBOURIS / GETTY IMAGES NORTH AMERICA / GETTY IMAGES VIA AFP
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