Since 2009, Satoshi Nakamoto’s mysterious invention of Bitcoin has resulted in its soaring to astronomical values, making and breaking fortunes. As the global recession shone a light on cryptocurrency, it was adopted by traditional Wall Street investment firms as a way to revolutionize trading and replace established currencies. This technology, known as blockchain, has developed over time, introducing thousands of different cryptocurrencies, such as Non-Fungible Tokens (NFTs). All of these assets now exist under the umbrella of Web3, which allows exclusive ownership of digital assets and automates or manually facilitates sales/trades of said assets.
Web3 products saw an increase in popularity during the pandemic, with the stock market, cryptocurrency and NFT assets all seeing investment. Even GameStop was getting in on the action, launching an NFT marketplace. However, by the end of 2022, crypto investments had become more unstable, highlighting the risk of investing in unregulated finance products.
The total losses from 2021 to present day, as recorded in the Web3 Is Going Just Great project and other news sources, equate to more than $68 billion, even after $8.9 billion was recovered for investors. The database covers over 500 events, with loss estimates ranging from a low of $800 to an astounding $40 billion, depending on the event. Where estimates are given as a range, the most conservative figure was used for this analysis. In the case of crypto exchange bankruptcies, losses reflect the amount of liabilities owed to creditors.
