Inventory: the biggest winners and losers of the crypto industry in 2021

The cryptocurrency and blockchain industries experienced explosive growth in 2021, especially in the areas of decentralized finance (DeFi) and non-homogeneous tokens (NFT).

The characteristics of the year also include continued price volatility, a major experiment in Central America, rising institutional interest, and the rise of some faster smart contract networks-all of which are reflected in this year’s industry “winners and losers” “On the list.

Winners in 2021

Kazakhstan

When China effectively banned Bitcoin mining operations in May 2021, Kazakhstan quickly filled the gap, allowing displaced miners and others to invest in its cheap and sufficient coal supply. Many companies operate in this Central Asian country, including the top five crypto mining pools operated by BIT Mining.

In July 2021, Kazakhstan’s monthly average computing power share was 18.1%, which means that it accounted for nearly one-fifth of global Bitcoin mining output, second only to the United States (42.7%), according to the Cambridge Alternative Finance Center Compared with the data of only 1.4% in September 2019, the growth is staggering.

In light of reports that with the advent of winter, the country is experiencing widespread power shortages, it remains to be seen whether Kazakhstan will maintain its share of global Bitcoin mining in 2022.

Coinbase

Coinbase Global, the largest cryptocurrency exchange in the United States, was listed on the Nasdaq on April 14, becoming the first crypto company listed on the U.S. stock exchange. The company’s closing price that day was US$328.28, with a market capitalization of US$86 billion. This amazing first-day performance made people compare it to the initial public offerings of Facebook and Airbnb. However, the company’s stock price fell at the end of the year, and the price on December 18 was $243.35, and the market value remained strong at $52.37 billion.

The listing of Coinbase is widely regarded as another sign that cryptocurrency has become mainstream, and more public offerings will come in the future. Kavita Gupta, founding managing partner of Delta Growth Fund, told Cointelegraph: “Coinbase will become the leader of the entire blockchain community on the open market.”

Solana

In 2021, a new wave of smart contract networks appeared. One of the largest and fastest growing is Solana, which is a super fast proof-of-stake network, which is said to be able to process 50,000 transactions per second (TPS). In contrast, Ethereum can process only 30 transactions per second.

Messari’s Ryan Selkis wrote: “In the history of cryptocurrency, there may be no project in 2021 that is more popular and faster than Solana.” This open source blockchain carries more and more NFTs and The DeFi project, although it has suffered several distributed denial of service attacks before 2021. According to data from Cointelegraph Markets Pro, as of December 20, Solona’s native cryptocurrency SOL easily ranked fifth among all cryptocurrencies, second only to BTC, ETH, BNB and USDT.

Nayib Bukele/El Salvador

El Salvador made history in 2021-becoming the first country to declare Bitcoin as legal tender. The country’s energetic President Nayib Bukele has deeply attracted the crypto world with what he did: use the energy of the volcano to power the country’s BTC mining, airdrop $30 of BTC to every adult in the country, and At the end of November, the launch of Bitcoin City was announced. This is a fully functional city built around Bitcoin, initially funded by a $1 billion Bitcoin bond.

Only time will tell whether all this is equivalent to the obvious economic “victory” of the Salvadoran people, but it can be said that Bukele bought on dips and brought some 21st century innovation and brilliance to this poor Central American land that relies heavily on remittances. Remittance refers to money sent home by foreign workers.

Mike Winkelmann, also known as Beeple

In February of this year, Christie’s, the first major auction house to offer purely digital works with unique NFTs, auctioned a digital collage without a price. No one knows how to price it. Mike Winkelmann (aka Beeple)’s “Everydays: The First 5000 Days” sold for $69.3 million, and the art industry may never see such a thing again.

The sale price of this work surpassed that of Georges Seurat, Paul gauain or Salvador Dalí, and made the relatively unknown Beeple one of the world’s highest paid contemporary artists such as David Hockney and Jeff Koons. This also tells people outside the crypto world that non-homogeneous tokens will become a force that cannot be ignored. Sales of NFTs rose sharply in 2021. At the end of November, “NFT” was declared as “Word of the Year” by dictionary publisher Collins.

Avalanche is another high-speed smart contract network entering the top 10 in 2021. CoinGecko said, “Solana and Avalanche are new stars in the DeFi multi-chain”, in the third quarter, their total lock-in value (TVL) share was 6% and 2%, respectively. These TVL growth came at the expense of Ethereum, which had almost all DeFi TVL (99%) at the beginning of the year. In contrast, Ethereum’s TVL share at the end of the third quarter was 76%.

Avalanche’s native currency, AVAX, had a market value of US$27.3 billion at the end of December last year, ranking 10th. This may have been driven by its agreement with Deloitte to support the consulting firm’s cooperation with the Federal Emergency Management Agency.

Sam Bankman-Fried/FTX

In 2021, Sam Bankman-Fried was declared the “richest person in the crypto field”, mainly because of his equity in the cryptocurrency derivatives exchange FTX he founded in 2019.

According to CoinGecko’s data, by the end of 2021, FTX has become the second largest crypto derivatives exchange after Binance (futures). Messari called FTX “the fastest growing company ever” and pointed out that Bankman-Fried had built a $25 billion company in less than three years with less than 100 employees.

With the participation of SoftBank (SoftBank), Sequoia Capital (Sequoia Capital), Coinbase Ventures, Multicoin, VanEck, and the Paul Tudor Jones family, FTX completed a $900 million round of financing in July. 1.2 billion U.S. dollars increased to 18 billion U.S. dollars. In June of this year, FTX won the long-term naming rights for the Miami Heat NBA basketball arena.

OpenSea

The NFT phenomenon is a boon for digital artists. They can sell their works without agents and physical galleries, but they still need a digital market. OpenSea is a pioneer in the field of NFT art and a leading NFT market, and is one of the biggest winners this year.

According to data from Cointelegraph Consulting, OpenSea charges a 2.5% commission for each sale on its platform, which is a relatively low percentage, but in August 2021, OpenSea received a substantial revenue of US$79 million. As of November this year, the company’s revenue exceeded $235 million. By December, the situation hadn’t changed much: “This world’s dominant NFT trading market is making a lot of money,” Messari said.

ProShares ETF

In mid-October, the first Bitcoin exchange-traded fund (ETF) approved by the US Securities and Exchange Commission (SEC) was launched, which overcomes certain obstacles. The ProShares Bitcoin Strategy ETF (BITO) was listed on the New York Stock Exchange on the first day and became the second-highest open fund in history. Some people call it “a watershed moment in the crypto industry.”

Its launch ended eight years of futile efforts by US fund issuers—Winkelvoss ETF was the first fund rejected by the U.S. SEC in 2013—but some people still thought that this breakthrough fund was a futures-based ETF. Disappointed by directly tracking the price of Bitcoin (BTC). The U.S. SEC clearly prefers two levels of regulatory protection—that is, under the joint supervision of the Commodity Futures Trading Commission (CFTC) and the U.S. SEC—a few weeks later, the U.S. SEC rejected VanEck’s spot market ETF application, further confirming this.

Losers in 2021

Meta (Diem)

Facebook’s Libra stablecoin project (now Diem) announced with great fanfare in 2019 that it has a group of blue-chip partners, but the project has been delayed and its scale is shrinking. Today, people rarely hear about Diem, except perhaps about leaving — for example, Dante Disparte left Diem to go to Circle, and recently, the head of cryptocurrency business David Marcus stated that he will leave the company at the end of the year .

Facebook changed its name to Meta, which has been criticized by US lawmakers for its “influence” on social media, and the stablecoin project originally scheduled to be launched in early 2021 may be collateral damage. There is not much clarity in any event. As the New York Times commented, “The Libra cryptocurrency was eventually renamed Diem, and the company’s efforts in crypto wallets were called Novi. These messy names are often confusing, even for company insiders. exception.”

Central Bank of Nigeria

In February of this year, the Central Bank of Nigeria (CBN) ordered all local banks to close the accounts of customers using cryptocurrencies. The president of CBN stated that most encrypted accounts are used to fund “illegal” activities such as money laundering and terrorism.

Nigeria is expected to soon launch a central bank digital currency like China, so CBN may be following China’s approach and clearing all rival cryptocurrency businesses before CBDC is launched. If this is the case, its efforts have completely failed.

Not only did the cryptocurrency survive, but by August, Nigeria had the world’s second largest Bitcoin peer-to-peer trading market.

Virgil Griffith

There was a time when Virgil Griffith was a celebrity in the crypto world. The former Ethereum developer and American citizen traveled to North Korea to participate in a cryptocurrency conference in early 2019. In November of the same year, he was arrested in Los Angeles for violating U.S. sanctions laws.

Ethereum co-founder Vitalik Buterin claimed at the time: “I don’t think Virgil’s actions have provided any real help to North Korea in doing bad things. He gave a speech based on publicly available open source software information.”

According to the Wall Street Journal, before the criminal trial in September 2021, Griffith “admitted a conspiracy to violate US law and went to North Korea to give a speech on the use of blockchain technology to launder money and evade sanctions”. As part of the plea agreement, he could face up to six and a half years in prison. It is unclear what prompted him to change his confession.

Iron Finance (TITAN)

Maybe it is not a good idea to use another stable currency USDC and an unknown governance token (TITAN) as collateral for a stable currency such as IRON. In this case, the result is called “the world’s first large-scale crypto bank run”-specifically, a run on the Iron Finance agreement. The result: In late June, the price of TITAN plummeted from more than $60 to a few thousandths of a cent in a few hours.

CipherTrace later stated that the incident was the result of a design flaw: “Iron. Finance lacks a proper stabilization mechanism.” But at the same time, some investors suffered heavy losses, including Dallas Mavericks owner Mark Cuban (Mark Cuban), He called for supervision to determine “what is a stablecoin and what collateral is acceptable.” On December 20, the transaction price of ICE was approximately $0.002.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/inventory-the-biggest-winners-and-losers-of-the-crypto-industry-in-2021/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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