Terra (MOON)

Terra (formerly LUNA, now referred to as LUNC) stands as one of the most notorious failed crypto projects of the year.

Terra fell over 99% in just 2 days

With a market capitalization exceeding $40 billion, it ranked among the top 10 cryptocurrencies worldwide. However, the failure stemmed from the stablecoin UST (now known as USTC), which was unable to maintain its peg to LUNA. Currently, Terraform Labs, the company behind LUNA, has grounded its staff from international travel while an investigation is underway.

The project’s arbitrage system failed during a period of mass un-staking and fund withdrawals. The primary cause of the collapse was related to flaws in the code.

Fark Light

Fark Light (formerly Hash-Light) was a project that Elon Musk had endorsed. Elon Musk’s brother, the creator, carefully assembled a team and recruited reputable advisors to develop the project.

However, after its announcement, the project quickly collapsed due to a critical bug in its code. This flaw rendered all tokens useless. The creators later admitted they had overlooked this issue during development.

Swello Finance Token

Swello Finance Token was a project that generated significant hope among investors. It gained support from major exchanges, and its CEO managed to launch the project ahead of schedule. However, it ultimately failed due to major security vulnerabilities on the exchange platform (AEX). Hacked coins were transferred back to the AEX account.

LV Metaverse (LV Plus Token)

LV Metaverse (LV Plus token) was a highly anticipated project known for its innovative lock system, which enabled users to secure their digital assets in physical devices.

Unfortunately, it also failed due to security flaws. The development team had made an error in designing the lock system, which allowed malicious actors to steal users’ assets. This flaw was discovered by an independent security firm in June 2022, leading to heavy criticism from the community.

Horizon by Harmony

Horizon by Harmony was a successful company with a market cap exceeding $20 billion. It was one of the first projects to prove financially successful. However, a hacker exploited vulnerabilities in its smart contract system, stealing over $5 billion USD.

Darayîya Inverse

Inverse Finance (formerly known as Avenger) was a project that attracted considerable investor interest. The CEO had strong connections and a team of respected advisors.

However, its market cap plummeted from over $14 billion to under $1 billion due to the project’s inability to address the SEC’s concerns regarding ICOs. The SEC also warned investors to approach the project with caution.

Winter Mute

Winter Mute (formerly MammothCoin) was a project backed by a former China-US cooperation chief. It gained popularity, reaching a market cap of over $400 million. Despite this, it collapsed due to significant flaws in the Android mobile wallet’s code.

This bug allowed hackers to steal users’ digital assets, and the wallet lacked multi-signature functionality for large sums that could be stolen in one go. Security researchers uncovered this flaw early in 2022.

Osmosis

Osmosis (formerly Liquidity Network) was one of the most well-known projects in the cryptocurrency space. Endorsed by prominent investors like Roger Ver and Tim Draper, it had a market cap of over $30 billion. Yet, it suffered from serious code vulnerabilities that many believed indicated collusion between project officials and miners. Additionally, the SEC showed strong interest in Osmosis due to its failure to address regulatory concerns about ICOs.

ApolloX

ApolloX (formerly Aventus) was another widely praised project that ultimately failed. A severe bug was discovered by security researchers, which allowed hackers to exploit ApolloX’s smart contract system and steal millions of dollars from its users.

Baby Musk

Baby Musk had a large market cap exceeding $500 million and a strong following. However, it too suffered from critical security flaws discovered by a security company. These flaws were the result of a bug in the project’s code, which was never addressed after being identified during a routine audit. The bug, discovered in early June, allowed malicious actors to steal users’ assets.

Neptune

Neptune (formerly Vera) was a successful project with no apparent security issues. It attracted many prominent investors, advisors, and partners. However, its success was short-lived due to connections with several failed projects. By the end of 2022, its value had dropped by more than 90%.

Reliable Crypto Projects to Consider

If you are looking for a more stable cryptocurrency investment, CryptoChipy suggests considering FTX or Binance, two of the most trusted exchanges in the industry today. Both provide stable transactions, low fees, and reduced risks when investing in cryptocurrencies.

FTX

FTX, which stands for Foreign Exchange, is a decentralized exchange that provides trading solutions for cryptocurrencies, tokens, and fiat currencies. The primary goal of FTX is to enable the tokenization of everything.

Users can trade cryptocurrencies, fiat currencies, and crypto-based assets such as bonds or futures. The platform also allows users to make purchases using their cryptocurrency holdings, including items like gold and silver bullion.

Binêrin

Binance is currently the fastest-growing crypto exchange, with trading volume steadily increasing. It supports a wide variety of cryptocurrencies and offers some of the lowest fees in the market.

Additionally, Binance offers a mobile app for users to trade cryptocurrencies on the go, which is a great feature. The exchange also boasts some of the best security protocols available in the crypto space today.

Thoughts Final

The majority of failed cryptocurrency projects in 2022 can be traced back to a common issue: poor project management and guidance, as seen with Celsius Network. Many companies start with promising ideas but fail to execute them properly and effectively.

As a result, they often feel like they are running in circles. They allow the market to dictate their projects’ direction and only take on ventures that reach a certain point.