Winners and losers of 2024: A year of all-time highs, hacks and hodling

As a seasoned observer of the ever-evolving world of cryptocurrencies, I find myself both awestruck and slightly skeptical as I reflect on the events of 2024 in the digital asset landscape. Having lived through the highs and lows of previous cycles, I’ve learned to appreciate the resilience and adaptability of this young industry.

In my humble opinion, the year 2024 was a rollercoaster ride for crypto enthusiasts and naysayers alike. On one hand, we witnessed the continued maturation of digital assets as major institutions like MicroStrategy and Tesla deepened their commitment to Bitcoin, while on the other hand, we saw celebrities jumping on the bandwagon with little regard for the long-term implications of their actions.

One event that particularly caught my attention was the meteoric rise and fall of Hawk Tuah (HAWK), a memecoin launched by social media sensation Haliey Welch. As someone who’s been around the block a few times, I couldn’t help but shake my head at the familiar pattern of hype, pump, dump, and subsequent lawsuits. It seems that some things never change!

However, amidst all the chaos, there were also moments of hope and progress. For instance, the continued growth of decentralized finance (DeFi) projects and the increasing adoption of blockchain technology by mainstream businesses offer promising glimpses into a more interconnected and equitable financial system.

But as I look back on the year that was 2024, I can’t help but laugh at some of the more absurd moments – like Germany selling nearly half of its Bitcoin stash for a paltry $2.8 billion (at least they didn’t spend it all on Bratwurst and beer!). And let’s not forget about the US government, who, despite sending 19,800 Bitcoin to Coinbase in December, still holds onto an impressive $17.7 billion worth of digital gold across various addresses – talk about being a bitcoin hoarder!

All things considered, 2024 was a year of both triumph and tribulation for the world of cryptocurrencies. As we look forward to the new year, I’m excited to see what fresh challenges and opportunities await us in this ever-changing landscape. And remember, as always, don’t trust any crypto project launched by a social media influencer with a pet bird – you never know when they might decide to fly the coop!

2024 saw a thrilling ride in the world of cryptocurrency, marked by significant triumphs for Bitcoin investors, creators of crypto ETFs, and memecoins. Notably, Bitcoin surpassed the $100,000 mark in December, bringing about considerable success for these groups.

However, things weren’t entirely perfect. This year, scams and cyber attacks resulted in losses worth approximately $2.2 billion for victims. Furthermore, unsuccessful celebrity-backed meme coin projects sparked the anger of disappointed investors and their legal representatives, leading to class action lawsuits.

Here are some of crypto’s biggest winners and losers of 2024.

Winners — Bitcoin hodlers

On December 5th, Bitcoin surpassed the significant price point of $100,000. This upward trend was fueled by an increasing number of crypto-friendly candidates who won congressional seats and anticipation for a highly pro-crypto U.S. administration. Following this milestone, Bitcoin reached a peak of $108,000 on the 17th of December, but later experienced a decline as the year drew to a close.

87% of Bitcoin owners currently find themselves in a profitable position, according to data from CryptoQuant, with the Bitcoin price hovering near $96,000.

Michael Saylor’s software business, MicroStrategy, has been one of the notable entities that have greatly profited from its investments. As per the Saylor tracker, the company’s value in Bitcoin (BTC) stands at approximately $42 billion as of December 27th.

2021 saw El Salvador officially recognize Bitcoin as a legitimate form of currency and acquire approximately 200 units. Since then, the nation’s Bitcoin reserves have grown significantly to a total of 5,942 coins, currently valued at around $576 million based on current market prices.

Other businesses also chose to emulate MicroStrategy by integrating Bitcoin into their financial reserves.

December 23rd saw the acquisition of an additional 620 Bitcoins by Metaplanet, a Japanese investment company, boosting their total Bitcoin holdings to approximately 1,762 units, valued at around $169 million. This news led to a 5% rise in their stock price, as reported by Google Finance.

On November 25th, it was announced that Rumble, an alternative to YouTube, intends to incorporate Bitcoin into its holdings. This news led to a surge in Rumble’s shares by 12.63%, raising them to $7.31, as per Google Finance.

US crypto ETFs issuers

On January 10th, the U.S. Securities and Exchange Commission (SEC) granted approval for asset management companies to launch U.S. Spot Bitcoin exchange-traded funds (ETFs).

As per K33 Research findings, Bitcoin Exchange-Traded Funds (ETFs) exceeded the value of gold funds for the initial time on December 16th, collectively reaching over $129 billion in managed assets.

The diagram showcases Bitcoin Exchange-Traded Funds (ETFs) and funds that mirror Bitcoin’s returns by employing financial instruments like futures contracts.

Memecoins

Memecoins saw another significant pump in 2024, becoming some of the year’s best performers.

At present, the total value of memecoins is approximately $104 billion. Notably, Dogecoin (DOGE) and Shiba Inu (SHIB) account for a significant portion of this figure, with Dogecoin at around $45 billion and Shiba Inu at about $12 billion. As per CoinGecko’s data, this is the current state of affairs. Furthermore, it’s worth mentioning that within the year, the Dogwifhat (WIF) meme token, which operates on Solana, has seen a remarkable surge of over 879%. Similarly, Pepe (PEPE) has also experienced a significant increase of around 1,205% during this period.

Through the year, Pump.fun, a memecoin launchpad on Solana, spearheaded an enormous wave of memecoins. Even though 98.6% of these memecoins failed to take off, Dune analytics reports that the platform’s accumulated income surpassed $325 million.

Crypto lawyers

Just like previous years, 2024 has been marked by crypto litigation and ongoing bankruptcies.

Last year, the Securities and Exchange Commission (SEC) found itself involved in approximately 583 legal actions against cryptocurrency companies. According to their annual report published on November 22, they managed to recover a total of $8.2 billion through financial remedies during this period that ended on September 30. This is a decrease of 26% compared to the number of cases from the previous year.

Independent of the final results, it’s safe to say that crypto-focused lawyers have consistently reaped significant benefits. A recent report by Bloomberg Law revealed that legal firms handling just Chapter 11 crypto bankruptcy cases amassed a staggering $751 million in fees collectively.

By 2023, numerous professionals such as lawyers, accountants, consultants, analysts, among others, received a minimum sum of $700 million as remuneration stemming from the bankruptcies of significant cryptocurrency companies.

Losers — Scam, hack and exploit victims

2024 was a challenging year for crypto investors as I found myself constantly on guard against scammers. According to a blog post by blockchain analysis firm Chainalysis published on Dec. 19, the total losses incurred due to scams, hacks, and exploits reached an staggering $2.2 billion this year. These unfortunate incidents occurred across 303 separate instances.

This shows a rise of 21% contrasted with 2023, during which there were $1.8 billion in losses across 282 events. The three most notable events account for a staggering $825 million lost just this year.

In comparison to the losses of $1.8 billion in 2023 due to 282 incidents, there was an increase of 21%. This year alone, three significant events led to a loss of $825 million.

In May, individuals under suspicion by the FBI as being linked to North Korea allegedly carried out a social engineering attack on the Japanese cryptocurrency exchange DMM, resulting in a theft of over $300 million. This makes it the largest crypto heist reported for the year 2024.

Previously, the Decentralized Finance (DeFi) and gaming platform PlayDapp suffered a theft of approximately $290 million worth of their PLA tokens. These tokens were taken by hackers who subsequently disregarded a $1 million reward offered for the return of the stolen tokens.

As a seasoned investor with years of experience in the cryptocurrency market, I’ve seen my fair share of ups and downs. One event that left a lasting impression on me was the shocking theft of $235 million from WazirX, one of India’s largest crypto exchanges, back in June. This unfortunate incident serves as a stark reminder of the risks inherent in this rapidly evolving market, and I believe it underscores the importance of taking extra precautions when investing in digital assets.

While the cryptocurrency landscape offers enormous potential for growth and opportunity, it’s essential to remain vigilant and proactive in protecting one’s investments. The theft from WazirX highlights the need for increased security measures and transparency within the industry, as well as the importance of staying informed about the latest developments and threats that may impact our investments.

In my personal experience, I’ve found it crucial to diversify my portfolio across various digital assets, and to never invest more than I can afford to lose. Furthermore, I always ensure that I am up-to-date on the latest security measures and best practices for protecting my investments, and I actively seek out reputable exchanges with robust security protocols in place.

Ultimately, the cryptocurrency market can be a volatile and unpredictable space, but with careful planning, due diligence, and a healthy dose of skepticism, it’s possible to navigate its challenges and reap its rewards. The unfortunate incident at WazirX serves as a valuable lesson for all investors, reminding us that the road to success in this market requires vigilance, caution, and a willingness to adapt to ever-changing circumstances.

Celebrities jumping on the crypto bandwagon

As a crypto investor, I’ve noticed that in previous market cycles, some celebrities have promoted cryptocurrency projects or launched Non-Fungible Token (NFT) collections to capitalize on the hype. This trend hasn’t skipped this cycle either, with a few even facing proposed class action lawsuits due to their questionable token launches this year.

As a researcher, I recently delved into the fascinating world of memecoins, focusing on a notable case – Hawk Tuah (HAWK), launched by Haliey Welch, also known as the Hawk Tuah girl, on December 4th. The token experienced an impressive surge, reaching a peak market cap of $490 million, only to plummet rapidly thereafter to $41.7 million. Since then, accusations of manipulative practices such as sniping and insider wallet selling have lingered.

On December 19th, several parties associated with the coin’s release were sued by investors for claims that they advertised and distributed an unlicensed securities sale, which is illegal.

Following several weeks without contact, in a post dated December 20, Welch stated that she is “completely assisting” her legal team.

Bitcoin paper hands and nocoiners

Even though some people stubbornly held onto their investments, others either sold them prematurely or missed out entirely.

Approximately 50,000 Bitcoins confiscated from the movie piracy site, movie2k, were sold by Germany on July 12. At that time, each Bitcoin was worth around $57,000, resulting in a total sale value of approximately $2.8 billion. This move generated quite a bit of astonishment among Bitcoin enthusiasts.

As per CoinGecko’s latest data, the value of 50,000 Bitcoins owned by someone in Germany would roughly equate to approximately $4.7 billion given the current price levels.

Critics within the cryptocurrency sector voiced disapproval towards the US after they transferred 19,800 Bitcoins, valued at approximately $1.9 billion, from their seized assets following the closure of the online black market Silk Road in 2013, to the crypto exchange Coinbase on December 2.

As reported by Spot on Chain, it’s estimated that approximately 183,850 Bitcoins, valued at roughly $17.7 billion, are held by the U.S. government in multiple known wallets.

Crypto criminals

On the 28th of March, the ex-CEO of FTX, Sam Bankman-Fried, was given a sentence of 25 years imprisonment following his guilty verdict on seven separate felony counts.

Many hackers, including Ilya Lichtenstein, have been brought to justice for their actions, such as the one who pilfered Bitcoin from the cryptocurrency exchange Bitfinex back in 2016.

In 2024, U.S. regulatory bodies collected approximately $19 billion through settlements stemming from cryptocurrency-related lawsuits, marking a significant 78% increase compared to the previous year’s total of $10.87 billion.

2024-12-29 15:07