The year in review of what has been an exciting year for crypto, despite the niggles along the way.
2021 has been an exciting year for crypto investors
2021 has been the most amazing year in the history of crypto. As per PitchBook Data, the total market capitalisation of cryptocurrencies reached $3 trillion (roughly Rs. 2,25,36,058 crore) in 2021, as venture capital funds pumped in $30 billion (roughly Rs. 2,25,346 crore) into the market through the year. The top five bullish crypto events of 2021 were:
Here's how some of the top cryptos fared in 2021:
| Cryptocurrency | January 1, 2021 (Rounded Off) | December 25, 2021 (Rounded Off) |
|---|---|---|
| Bitcoin | $29,374 (roughly Rs. 22.06 lakh) | $51,000 (roughly Rs. 38.30 lakh) |
| Ether | $730 (roughly Rs. 54,833) | $4,000 (roughly Rs. 3 lakh) |
| Binance Coin | $38 (roughly Rs. 2,853) | $550 (roughly Rs. 41,308) |
| Solana | $2 (roughly Rs. 150) | $190 (roughly Rs. 14,270) |
| Cardano | $0.2 (roughly Rs. 15) | $1.5 (roughly Rs. 112) |
| Terra | $0.7 (roughly Rs. 53) | $97 (roughly Rs. 7,286) |
| Avalanche | $4 (roughly Rs. 300) | $116 (roughly Rs. 8,709) |
| Polkadot | $8 (roughly Rs. 600) | $29 (roughly Rs. 2,178) |
| Dogecoin | $0.006 (roughly Rs. 0.45) | $0.2 (roughly Rs. 15) |
| Polygon | $0.02 (roughly Rs. 1.5) | $2.5 (roughly Rs. 188) |
Source: CoinMarketCap.com
In November, the overall market capitalisation of cryptocurrencies crossed $3 trillion (roughly Rs. 2,25,36,058 crore) for the first time ever.
2021 was a great year for meme coins, especially Dogecoin and Shiba Inu.
We have also seen a flurry of news around Central Bank Digital Currencies (CBDCs) with China leading the pack.
A prominent report found that 55 out of the top 100 banks in the world have some form of blockchain or crypto exposure in their portfolios.
On the bearish side, the largest crypto exchange Binance suffered many outages and also faced a ton of legal problems in many countries.
The year also saw a massive number of rug pulls, hacks and scams. Reuters estimated that Decentralised Finance (DeFi) platforms lost over $10 billion (roughly Rs. 75,047 crore) to frauds and scams.
The strangest was the massive $643 million (roughly Rs. 4,825 crore) hack on the Poly Network. The hacker returned all the funds!
A huge rug pull was the Squid Game token, which zoomed to a price of nearly $3,000 thanks to the coverage by top media houses like CNBC, Forbes, Business Insider, etc.
One of the biggest scams, $3.6 billion (roughly Rs. 27,017 crore) , was carried out by brothers Raees and Ameer Cajee who operated the South Africa company Africrypt.
A crypto phishing scam targetted users of crypto wallets MetaMask and Phantom, and the crypto swap platform PancakeSwap.
The US law enforcement agency, FBI, warned of frauds that leveraged crypto ATMs and QR codes.
Other losses include:
The Solana Blockchain had its share of problems. First, it went down for 17 hours and later suffered a Distributed Denial of Service (DDoS) attack.
Bitcoin SV faced multiple 51 percent attacks.
We also saw major crypto crashes in 2021 - Internet Computer (ICP) lost 93 percent in just over a month, IRON Titanium Token (TITAN) went from $52.46 (roughly Rs. 3,937) to $0.00000003 (roughly Rs. 0.0002) in barely 10 days and SafeDollar (SDO), a stable coin suddenly went to zero.
Two crypto exchanges collapsed in Turkey. The first was Thodex, whose CEO disappeared with $2 billion (roughly Rs. 15,009 crore) of investors' funds. The second was Vebitcoin, which stopped activities after facing "financial strain". Two Australian crypto exchanges, Mycryptowallet and ACX, also shut down and cost their investors millions.
Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow him on LinkedIn.
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