The year 2021, which was widely regarded as the “golden age” by many cryptocurrency communities, not only witnessed the crazy growth of the market, but also was filled with dramatic events and notable figures. From the rise and fall of FTX to the gambling and collapse of LUNA, the crypto world is still filled with enthusiasm and unknowns.
The era of SBF and FTX
In 2021, as one of the world’s largest cryptocurrency exchanges, FTX founder Sam Bankman-Fried (SBF) frequently appeared in interviews and live streams, sporting FTX t-shirts and nervously fidgeting with his hands.
As a rising star in the crypto industry, his every move became a hot topic of discussion within the community. However, no one could have predicted that he would later become the central figure in one of the biggest scandals in the crypto market.
(SBF’s Biography: Top 50 FTX accounts hold $4 billion, Caroline revealed as the source?)
Do Kwon’s bet and being jailed
Shortly after, Do Kwon, the founder of Terraform Labs, and legendary trader GCR (@GiganticRebirth) made a multimillion-dollar bet on Twitter that LUNA would collapse within a year.
Sure, fund@cobie’s wallet and I will match
Gluck
— Do Kwon (@stablekwon)March 14, 2022
(Do Kwon’s 10-month fugitive journey, a legend in the crypto world caught later than SBF)
Nowadays, Luna has become a topic mentioned only after a meal during the Mid-Autumn Festival, while Do Kwon has been traveling the world. Perhaps he never imagined that one day he would hear the advice “prison is not that bad” from Martin Shkreli. Both Kwon and SBF can be said to have benefited greatly from it.
(SBF’s “Prison Survival Guide”! Tips from an inmate: shave your head, lower your voice, listen to rap music)
On the other hand, well-known venture capital firm Galaxy suffered heavy losses due to Luna, and its founder Mike Novogratz, who once had a Luna tattoo, said he would no longer touch algorithmic stablecoins.
The Twitter and Bluebird of the past
In 2021, cryptocurrencies were not yet referred to as “Web3,” and Twitter was still just “Twitter.” Su Zhu, the founder of Three Arrows Capital (3AC), had not yet gained notoriety due to bankruptcy, and American football star Tom Brady still had a happy marriage with supermodel wife Gisele Bündchen.
(A year in review: Musk’s acquisition of X (Twitter) and the effectiveness of the restructured super app)
The good old days, the old Ethereum
The blockchain ecosystem at the time was still in the expansion stage, with far fewer L1 and L2 solutions than today, and even fewer actual use cases. However, the market sentiment was high, and investors were full of expectations for new technologies and had great confidence in future developments. In 2021, the ETH/BTC exchange rate was still an important indicator of market rotation, and everything was vibrant and lively.
Now, with more applications and cryptocurrencies becoming more mainstream, the market sentiment is strangely frightening. This indicator also seems to no longer be the market focus, as the meme season exclusive to Solana has firmly left Ethereum and altcoin season behind.
(The lost Ethereum? A new investment paradigm: TRUMP driving SOL, skipping ETH and entering altcoin season)
Looking back at 2021, it was a time of opportunities in the market, with a playful community and rules that were not yet fully established. Both FTX and LUNA symbolize a cryptocurrency golden age that is unlikely to be replicated. These stories and memories have now become part of history, reminding us that with the rapid development of the market, the past enthusiasm and glory may never be regained.
Risk Warning
Cryptocurrency investment carries a high level of risk, and prices can fluctuate dramatically, potentially leading to a loss of all your capital. Please evaluate the risks carefully.