We continue our new rubric on the website by looking at the critical crypto events of May 2022. In this monthly overview, we highlight the significant crypto industry news and developments. It has been another busy month with some rather intriguing events.
Luna Token Price Meltdown As Supply Explodes
Once-popular crypto blockchain Terra saw a massive meltdown affecting its $LUNA token and the UST stablecoin. The price of $LUNA dropped below $0.0001 after hitting a fresh all-time high of nearly $120 just days prior. The token's supply became inflated to over 6.4 trillion $LUNA, resulting in the Terra team forking the chain and creating a new LUNA token capped at a 1 billion supply. However, the inflated supply - now dubbed Luna Classic - and its old chain are still supported by various exchanges.
Bitcoin Price Drops Below $27,000 Again
The LUNA token price fiasco wasn't the only development affecting the crypto markets, as Bitcoin dropped below $27,000 in mid-May. As the leading cryptocurrency, Bitcoin has taken a substantial beating since its all-time high above $69,000 in 2021. Several factors contributed to this bearish momentum, including global inflation, dwindling risk appetite by investors, etc.
Coinbase Stock Keeps Trending Lower
May 2022 was rough for all cryptocurrencies, but the same applies to crypto companies. Coinbase, the popular exchange, and publicly traded company has reported a $430 million net loss in Q1 2022. That news yielded tremendous pressure on its stock price, driving the value into the ground and triggering a near 50% loss in a week. The company began trading at $429 per share 13 months ago, yet saw its value hit under $54 this month.
Balenciaga Starts Accepting Crypto Payments
In more positive market news, fashion powerhouse Balenciaga joins the ranks of TAG Heuer and Gucci in accepting cryptocurrency payments. Luxury brands continue to explore new avenues to attract customers, and cryptocurrency enthusiasts are their next big target audience. Balenciaga stores in the US will start accepting Bitcoin and Ethereum payments next month, fueling broader crypto adoption.
Crypto Billionaire Population Dwindles
The ongoing bearish pressure across all crypto markets has triggered another interesting statistic. There were 19 crypto billionaires at the peak of 2021, yet fewer of them seem to be in that elusive club today. Two exceptions are Binance founder and CEO Changpeng Zhao - although his wealth dipped from $65 billion to $14.9 billion rather quickly - and Sam Bankman-Fried, who is still worth $11.3 billion. However, many others have lost their billionaire status, including Vitalik Buterin, Brian Armstrong, Gary Wang, Chris Larsen, and the Winklevoss twins.
Instagram Goes All-in On NFTs
Non-fungible tokens are still a big trend in the broader crypto and blockchain ecosystem. Instagram is the latest platform to incorporate this functionality and will enable support for NFT assets on Ethereum, Solana, Polygon, and Flow. For now, the pilot program is only available in the United States, and users can display NFTs on their accounts and prove ownership.
