When people say that FTX was the worst thing that happened to crypto in the long time, maybe we should back up and get some perspective on that. Things were already messed up. As in comparison, total crypto marketcap was thriving during covid and recovered almost instantly to ATH after tesla dumped their crypto. But LUNA was the thing that broke everything. FTX was nothing compared to that.
Well i kinda agree. I also think that the whole events around Terra (Luna) also where a major incident within the crypto space, because it was also a major company which was also in the top 10 in terms of marketcap if i remember correctly that fell apart very fast. Now with the happenings around FTX people often forget about that because the FTX events are just more recent. I don't think though that the Terra incident had bigger impacts on the crypto world than the bankruptcy of FTX. Yes, the prices went down even more in terms of percentages when UST lost it's peg but the main reason for that is that the prices were higher back then obviously. So those two events are hard to compare in my opinion.
Before FTX, Others and Luna, the market is already in bear and I think a bear occurs naturally. There are no major reasons on why it happened although there are some things which can amplify it such as when weak people panics and sell after seeing the price crashing hard. Another thing would be the negative news or negative events and the fall of UST is the first one in this list, then followed by luna coin. Other big crypto companies like Three arrows capital are then following the trend.
The last to finish the list would be the collapse of FTX exchange. We shouldn't underestimate this one because the amount involved here are billions. All of these are going to be remembered forever due the amount of damage that they have caused.