The year 2022 was a rollercoaster for the Web3 industry. While it faced significant challenges, the sector also saw remarkable progress and innovation. From groundbreaking NFT launches to major security breaches and industry-shifting acquisitions, the past year has set the stage for future growth. Let’s revisit the 12 most memorable Web3 events that defined 2022.
January: Phanta Bear Launch
On January 1, 2022, Ezek, a digital entertainment platform, partnered with Jay Chou’s brand PHANTACi to release the Phanta Bear NFT collection. All 10,000 NFTs sold out within 40 minutes, generating over 62 million RMB in revenue.
Initially, the collection dominated OpenSea’s art trading volume rankings, thanks to Jay Chou’s social media endorsements. However, due to limited utility and lack of ongoing community engagement, the project’s value plummeted by over 96% from its peak.
This event highlighted the importance of sustainable value in NFT projects. While celebrity endorsements can drive initial hype, long-term success requires robust community building and continuous innovation.
February: Ukraine Accepts Crypto Donations
On February 26, Ukraine’s official Twitter account announced it would accept cryptocurrency donations to support its efforts. By early March, the country had received nearly $100 million in crypto contributions.
This move demonstrated the practical benefits of decentralized finance in crisis situations. However, subsequent sanctions against Russian users by platforms like OpenSea raised questions about the true neutrality of Web3 ecosystems.
March: Axie Infinity’s Ronin Network Hack
In late March, the Ronin Network, a sidechain for Axie Infinity, suffered a security breach resulting in the loss of $600 million. Hackers compromised five of the network’s nine validator nodes, and the exploit went unnoticed for nearly a week.
This incident remains one of the largest decentralized finance hacks in history. It underscored the critical importance of security in blockchain infrastructure and the risks associated with cross-chain bridges.
April: MoonBirds Take Flight
MoonBirds, a profile picture (PFP) NFT project by Proof Collective, launched on April 16. Its trading volume quickly captured nearly half of the entire NFT market’s activity.
The project introduced the “PASS+PFP” model, where holding a foundational NFT grants access to future benefits and releases. Founded by Kevin Rose, a renowned venture capitalist, MoonBirds emphasized the value of experienced leadership in NFT projects.
Its success signaled a shift toward more sophisticated NFT utility and investment models.
May: Yuga Labs Launches Otherside
Yuga Labs, the creators of Bored Ape Yacht Club, launched Otherside, a metaverse project, on May 1. The minting event caused a massive gas war on Ethereum, with fees briefly exceeding 3 ETH.
Following its acquisitions of CryptoPunks and Meebits, Yuga Labs solidified its position as a dominant force in Web3. Otherside represents a ambitious vision for an interconnected NFT ecosystem and has become a benchmark for metaverse projects.
June: NFT.NYC Conference
NFT.NYC, the largest NFT-focused conference, took place in Times Square from June 20–23. It featured 1,500 speakers and attracted over 15,000 attendees, including artists, entrepreneurs, and enthusiasts.
Compared to its inaugural event three years prior, which had only 500 participants, NFT.NYC 2022 reflected the explosive growth of the NFT community. It served as a hub for collaboration, education, and showcasing the diversity of Web3 innovations.
July: Three Arrows Capital Collapse
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, filed for bankruptcy in early July. The firm’s collapse followed the crash of Terra’s LUNA and UST tokens in May, which caused massive losses across the industry.
The downfall of 3AC sent shockwaves through the crypto market, contributing to widespread liquidity issues and loss of investor confidence. It served as a stark reminder of the risks inherent in emerging financial ecosystems.
August: BendDAO Liquidity Crisis
BendDAO, an NFT lending protocol, faced a severe liquidity crisis in August. As NFT prices declined, many collateralized assets neared liquidation thresholds. The potential mass liquidation of blue-chip NFTs threatened to deepen the market downturn.
The protocol survived by adjusting its parameters, but the event highlighted the fragility of NFT liquidity during bear markets. It emphasized the need for robust risk management mechanisms in DeFi platforms.
September: Ethereum Merge
On September 15, Ethereum successfully transitioned from proof-of-work (PoW) to proof-of-stake (PoS) consensus. The Merge marked a historic milestone for the network, reducing its energy consumption by over 99%.
This upgrade sets the stage for future scalability improvements, enabling Ethereum to support more decentralized applications and users. The Merge represents years of research and development and accelerates the adoption of sustainable blockchain technology.
October: Musk Acquires Twitter
Elon Musk completed his $44 billion acquisition of Twitter on October 27. He had previously expressed intentions to integrate Web3 features into the platform, including decentralized identity, NFT displays, and crypto payments.
With its massive user base, Twitter has the potential to introduce millions to Web3 concepts. Musk’s vision could significantly advance the adoption of decentralized social media and creator-centric economies.
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November: FTX Bankruptcy
FTX, once the world’s second-largest cryptocurrency exchange, collapsed in November. The downfall began with reports questioning the financial stability of Alameda Research, its affiliated trading firm. Binance CEO Changpeng Zhao’s announcement to liquidate FTT tokens triggered a bank run, leading to FTX’s bankruptcy filing within days.
The event eroded trust in centralized exchanges and underscored the importance of transparency in crypto operations. It also drove increased interest in self-custody solutions like hardware wallets.
December: Trump NFT Collection
Former U.S. President Donald Trump launched an NFT collection on December 15. The 45,000 NFTs priced at $99 each sold out within 18 hours. Holders gained access to exclusive experiences, such as meetings with Trump and signed memorabilia.
The collection demonstrated NFTs’ potential for fan engagement and real-world utility. It also hinted at future applications in areas like voting and official digital records.
Frequently Asked Questions
What was the most significant Web3 event in 2022?
The Ethereum Merge was arguably the most impactful event. It transitioned the network to a sustainable consensus mechanism and laid the foundation for future scalability, benefiting the entire Web3 ecosystem.
How did the FTX collapse affect the crypto industry?
FTX’s bankruptcy caused widespread distrust in centralized exchanges and highlighted the need for better regulatory oversight. It also accelerated the shift toward self-custody and decentralized finance solutions.
Why did MoonBirds become so popular?
MoonBirds combined strong leadership, innovative utility, and community incentives. Its “PASS+PFP” model rewarded early adopters and set a new standard for NFT project design.
What lessons can we learn from the Ronin hack?
The Ronin breach emphasized the importance of robust security protocols, especially for cross-chain bridges. Projects must prioritize regular audits and decentralized validator sets to prevent similar incidents.
How might Twitter influence Web3 adoption?
With Elon Musk’s plans for Web3 integration, Twitter could introduce features like decentralized identity and NFT displays to millions of users, significantly accelerating mainstream adoption.
Are celebrity-backed NFTs a good investment?
While celebrities can generate initial hype, long-term value depends on utility, community engagement, and ongoing development. Investors should research projects thoroughly beyond endorsements.
Conclusion
The Web3 industry experienced both triumphs and setbacks in 2022. From technological milestones like the Ethereum Merge to cautionary tales such as the FTX collapse, these events shaped the ecosystem’s evolution. As the industry continues to mature, these lessons will inform future innovations and foster a more resilient decentralized landscape.