It is crypto winter, and it looks like the Survivor Series for Altcoins, Cryptocurrency Exchanges, Stable Coins, Bitcoin, and everything about cryptocurrency.  It is Crypto War trending during the Crypto Winter.  It is all about sustainability everywhere.

Cryptocurrency Exchange Scenario

• Cryptocurrency companies like FTX, Core Scientific, Celsius network trending towards bankruptcy is discouraging.
• FTX Collapse established the idea that cryptocurrency is very dangerous. The credibility of cryptocurrencies came to limelight and is now being put to test.
• FTX collapse has driven non-believers to drive the idea that cryptocurrency is set to move towards collapse.
• Cryptocurrency users who are individuals and companies are calling for more regulation as several crypto ambitious projects are shaken.
• Transparency is disappearing in several centralized cryptocurrency exchanges.
• When volatility was high, buying cryptocurrency was lot of fun as they were able to make profits. Now, the price has touched lowest points and is trading in tight ranges leading several fans to call it quits.
• Small investors tend to be the biggest losers when cryptocurrency exchanges collapse.
• It is going to be very hard for retail investors to see recovery of their investment when they invest in cryptocurrency exchanges.
• There are students who have put their little earnings in hopes of making tiny profits for their smaller expenses, which again leaves them in trouble.
• Corporate Governance was an issue for as long as FTX was concerned.

Stable Coin Scenario

• Previously, the Luna crypto crash was caused by its connection to Terra USD (UST), the algorithmic stable coin of the Terra network.
• On May 7, 2022, over $2 billion worth of UST was un staked (taken off the Anchor Protocol), and hundreds of millions of it were quickly liquidated.
• Terra’s widely adopted stable coin, UST, fell from its 1:1 USD peg to 0.03:1 USD for the lowest price.
• The collapse of LUNA shook the entire crypto industry, accelerating the 2022 bear run thus triggering selling spree of BTC and other stable coins and bringing about systemic trouble.
• The importance of stable coins being backed by appropriate reserves is the lesson learnt.

Cryptocurrency Lending

Celsius Network LLC is now a bankrupt cryptocurrency lending company.  They had their tokens built on Ethereum Blockchain and it was a major attraction for those who did not want to face risks when trading crypto.

The cryptocurrency market in 2022 was extremely volatile and unstable due to major financial issues like inflation, a weak stock market, and increased interest rates by the Federal Reserve System in the US. More people pulled out their funds and other suspected the ability of CEL to repay the deposited crypto funds. On June 12, 2022, Celsius Network froze all crypto withdrawals eventually the value plummeted down to 70%

Eventually, A further court ruling revealed that the company had a $1.2 billion hole in their balance sheet.  Further the total liabilities were at $5.5 billion and assets were worth $4.3 billion.