As much as any other industry, crypto hasn’t grown in a smooth line upwards. Bitcoin was born, barely learned to walk, and then stumbled into several precipices. Community and regulators drew several lessons from those experiences, moved forward, and some shiny things appeared along the way, too. Over the years, we’ve lived through some very important events that have changed crypto forever. We’ve already talked about Mt. Gox and Silk Road in a different piece, but not everything has been dark and gloomy. Let’s explore five important moments in crypto, and how they’re still shaping the whole industry —and your own assets. Mt. Gox and Silk Road Mt. Gox and Silk Road The DAO Hack Not every project is destined for success. The DAO by Slock.it, launched in April 2016, seemed to have everything to be a star. It was a star for a while, indeed. They raised around $150 million in ether (ETH), making them one of the largest crowdfunding campaigns in history. The promise was a Decentralized Autonomous Organization (DAO) built on Ethereum that would work as an investment fund. was In other words, people would pool crypto and use voting tokens to decide which projects received financing, without a traditional company or managers. It seemed like a great idea until the code didn’t work as expected. The DAO brought its own set of ingrained exploits, and a hacker took advantage of them. That same year, in June, they siphoned around $70 million from the project, and everyone panicked. The DAO The DAO It may not seem like a lot, considering more recent hacks on crypto platforms, but, at the time, it was a huge scandal for Ethereum. The DAO was one of their first “successful” projects, so confidence in the network dwindled. That’s why the core team made a very controversial decision: they applied a “fork” (update) on the network to “erase” the hack. That’s why the core team made a very controversial decision: they applied a “fork” (update) on the network to “erase” the hack. ETC & Howey ETC & Howey Since blockchains are supposed to be immutable and decentralized (not controlled by a single party), there was a lot of community backlash after the fork. Enough for the attacked network to survive, with hack and all, as Ethereum Classic (ETC), while the modified one continued as the Ethereum (ETH) we know today. Besides, this wasn't the only consequence. The DAO attracted considerable attention to crypto, including from regulators. In 2017, the U.S. Securities and Exchange Commission (SEC) referenced this event when explaining how the Howey Test applies to crypto assets, stating that some token offerings could qualify as securities depending on expectations of profit, promised by external efforts. In the end, The DAO managed to split Ethereum forever and brought new regulations to the table. In 2017, the U.S. Securities and Exchange Commission (SEC) referenced this event when explaining how the Howey Test applies to crypto assets, stating that some token offerings could qualify as securities depending on expectations of profit explaining explaining DeFi Investments: One Event After Another Smart contracts are automated agreements built in code, designed to offer immutable results once pre-set conditions are met. After the launch of crypto networks that offered this feature, like Ethereum (in 2015) or Obyte (in 2016), developers soon discovered they could be used for investments, too. They started to create a whole range of financial products that worked with smart contracts, 24/7, without access requirements or managers behind them. Decentralized Finance (DeFi) was born around 2017, bringing several neat events or milestones for crypto. Early stablecoins appeared around 2014, using external reserves or algorithms to track a fiat price (often the USD). They'd move into smart contract platforms over the years. Lending platforms appeared in 2017, locking collateral in smart contracts to mint loans. Early Decentralized Exchanges (DEXs) from 2016 tried a P2P approach with an order book, while Automated Market Makers (AMMs) in 2018 replaced that system with liquidity pools. Liquidity "mining" became a popular way of passive investment: the user only needed to deposit a pair of tokens into a pool to earn from fees, while others were able to trade. Early stablecoins appeared around 2014, using external reserves or algorithms to track a fiat price (often the USD). They'd move into smart contract platforms over the years. DEXs DEXs By 2020, about $9 billion was locked in DeFi protocols, used daily for loans, liquidity, and market activity. Crypto was no longer just an alternative form of money. It became programmable finance. Today, we have more complex DeFi products, like restaking on EigenLayer or perpetual futures on Obyte. The Total Value Locked (TVL) in these protocols amounts to $124.3 billion, approximately. was locked was locked perpetual futures perpetual futures Total Value Locked Total Value Locked Terra Collapse Launched in 2020, Terra was a popular blockchain ecosystem with its own stablecoin, Terra USD (UST). Unlike other stablecoins, backed by traditional money, UST kept its 1 USD price by minting and burning LUNA coins, the native asset of Terra. It was an algorithmic stablecoin, likely the most popular of its type. It worked for a while… until it didn’t. By early 2022, Terra and UST had attracted billions in institutional and retail investment, with the broader ecosystem peaking near 60 billion dollars in combined value. All of this was erased on May 8, when UST lost its $1 peg. Market panicked, redemptions spiked. LUNA was dragged into the chaos, and both tokens collapsed into oblivion. It wasn’t just another cryptocurrency failing, though. By early 2022, Terra and UST had attracted billions in institutional and retail investment, with the broader ecosystem peaking near 60 billion dollars in combined value. peaking peaking The fallout spread far beyond Terra. Major hedge funds like Three Arrows Capital imploded after heavy exposure, triggering losses across lenders and exchanges. Many well-known brands lost millions. Trust drained from the market, setting the stage for later failures, including FTX in late 2022. Regulators responded by zeroing in on stablecoins, with new rules in regions like the EU. Algorithmic stablecoins are now banned there, and in several other jurisdictions as well. Three Arrows Capital Three Arrows Capital setting the stage setting the stage several other jurisdictions several other jurisdictions Legal Tender and Reserve Asset In 2021, El Salvador, a small Central American nation, made global headlines when it recognized Bitcoin as a legal form of money alongside the U.S. dollar, changing decades of monetary policy. At the same time, the government began buying Bitcoin for national reserves, funding purchases directly through the treasury. In 2021, El Salvador, a small Central American nation, made global headlines when it recognized Bitcoin as a legal form of money alongside the U.S. dollar, changing decades of monetary policy The event brought government-backed wallets, nationwide infrastructure, and worldwide attention. Adoption among citizens moved unevenly, but the signal was loud and clear: a sovereign state was willing to build policy around an open, borderless network. International institutions pushed back, debates intensified, and a long bear market tested this decision. Still, the country held its position and kept its Bitcoin. pushed back pushed back By 2025, after revisions tied to an IMF agreement, Bitcoin was no longer mandatory for businesses and lost its legal tender requirement. Yet, the echoes remained. El Salvador retained its Bitcoin reserves, holding over 6,200 BTC bought at an average near $42,000. When Bitcoin surged past $120,000, those holdings exceeded $760 million, nearly tripling their value. That’s maybe why the United States created its own Bitcoin reserve in 2025, too. was no longer was no longer El Salvador retained its Bitcoin reserves, holding over 6,200 BTC bought at an average near $42,000. its Bitcoin reserves its Bitcoin reserves created created No other country maintains Bitcoin as legal tender today, but the consequences endure. Governments now discuss crypto for policy and reserves. That shift began here, and it changed the conversation for good. Crypto ETFs Exchange-traded funds (ETFs) are investment products that trade on stock exchanges like shares while holding a basket of underlying assets. Those underlying assets could be cryptocurrencies, yes, but the details remained with regulators, constantly denying this possibility. For years, crypto ETFs felt like a door that almost opened, then shut again. The first serious attempts appeared in the early 2010s, when proposals like the Winklevoss Bitcoin Trust and products such as the Grayscale Bitcoin Trust gave investors indirect exposure through trusts rather than true funds. We had a breakthrough in 2021 with the ProShares Bitcoin Strategy ETF (BITO), the first U.S. product tied to Bitcoin futures. It wasn't perfect, yet it proved demand at an institutional scale. More variations followed, but none of them were directly tied to the "real" thing. serious attempts serious attempts We had a breakthrough in 2021 with the ProShares Bitcoin Strategy ETF (BITO), the first U.S. product tied to Bitcoin futures. A turning point arrived in 2024. The US SEC finally __approved __the launch of 11 Bitcoin spot ETFs, which hold this asset directly on behalf of investors. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund led the wave, drawing billions within weeks. Crypto moved from niche access to mainstream finance infrastructure, changing how institutions, advisors, and long-term investors engage with digital assets. approved Decentralization for the Future An important point to consider is that most of these events have pushed crypto into mainstream finance, for better or for worse. Some of them have created new rules, some others have filled the vaults of centralized parties (like big companies and governments) with a lot of cryptocurrencies. This is good for liquidity, but not that good for the decentralization crypto was created for. The best alternative for individual users is likely to take advantage of those new products and accessibility, while keeping their main private keys close to their hearts. This is good for liquidity, but not that good for the decentralization crypto was created for. private keys private keys DeFi is also booming, with no serious limitations in sight, so users can also trade and invest through these protocols. In Obyte, users can enjoy a whole range of DeFi products while maintaining complete custody of their own funds and data. All of this inside a fully decentralized network, without any middlemen (no miners, no “validators”). The whole industry will keep growing, but we should preserve our autonomy as well. Obyte Obyte Featured Vector Image by Freepik Featured Vector Image by Freepik Freepik Freepik
