From Boom to Bust: How Ended in Total Ruins

In the bustling streets of Hanoi and Ho Chi Minh City, a digital gold rush swept through Vietnam. Young students, gamers, and everyday workers poured money into cryptocurrencies like Bitcoin and altcoins. Dreams of quick riches filled the air. But just as fast as it rose, the boom crashed hard. Investors lost fortunes, companies went bankrupt, and thousands faced layoffs. What went wrong in ? Let’s dive into the story.

The Spark of Vietnam’s Crypto Craze

Vietnam has long been a hotspot for crypto adoption. Unlike China, which banned crypto outright, Vietnam kept things in a legal gray area. The government blocked crypto for payments but let people trade and hold it freely. This mix of freedom and uncertainty fueled massive growth.

By 2021, Vietnam ranked among the top countries for crypto use. Over 20% of people owned digital assets. Why? A young population, high internet use, and a love for gaming played big roles. Apps like Binance and local exchanges made it easy to jump in.

Take Hoang Le, a 23-year-old computer science student in Hanoi. From his dorm room, he started trading Bitcoin with friends. They were gamers who struck gold in play-to-earn games. “Profits were sky-high,” Hoang recalls. “Everyone jumped in.”

The Height of the Hype: Stories of Overnight Wealth

During the peak, crypto turned ordinary folks into millionaires – at least on paper. Play-to-earn games like Axie Infinity, created by Vietnamese firm Sky Mavis, exploded. Players earned tokens by battling cute creatures. Some quit jobs to farm full-time.

• Axie Infinity peaked at over 2.7 million daily users.
• Tokens like AXS hit $160, making early investors rich.
• Students like Hoang doubled or tripled their money in weeks.

Social media buzzed with success stories. Cafes hosted “crypto meetups.” Families sold land or gold to buy more coins. The vibe was electric – pure FOMO, or fear of missing out.

Greed Takes Over: Warning Signs Ignored

“When profits were high, ,” Hoang says. It was too good to be true. Leverage trading amplified wins – and losses. People borrowed money to bet big. Influencers hyped “moonshots” without risks.

Vietnam’s loose rules helped the boom but hid dangers. No strong oversight meant scams thrived. Ponzi schemes disguised as DeFi projects sucked in billions. Regulators warned, but the rush drowned them out.

The Crash: When the Bubble Burst

Then came the winter. In 2022, Bitcoin plunged from $69,000 to under $20,000. Altcoins and NFTs tanked harder. Vietnam felt the pain deep.

• Sky Mavis laid off 25% of staff and wrote off $150 million in Ronin bridge hack losses.
• Local exchanges like VCC faced bankruptcy after hacks.
• Thousands of Axie players saw earnings drop 90%.

Hoang’s portfolio? Wiped to zero. “It hurt a lot,” he admits. Friends sold bikes and phones to cover debts. Suicides linked to losses made headlines. The lay in ruins.

Real Lives Hit Hard: Investors Speak Out

Meet Nguyen Thi Lan, a 28-year-old office worker in Ho Chi Minh City. She invested savings from play-to-earn. Now jobless after layoffs, she regrets it. “I thought it was the future,” she says.

Factories and tech firms cut crypto-linked jobs. Remittances via crypto dried up. Even big players struggled. The government stepped in with tighter rules, taxing trades at 20% and eyeing full bans.

Lessons from the Wreckage: Paying Tuition in Tears

Hoang calls his losses “tuition fees.” A harsh but smart view. Key takeaways from bust:

1. Diversify: Don’t put all eggs in crypto.
2. Understand risks: Volatility isn’t a bug, it’s a feature.
3. Avoid greed: High returns mean high danger.
4. Learn basics: Blockchain isn’t get-rich-quick.

Experts say Vietnam’s tech-savvy youth will bounce back. Blockchain for supply chains and NFTs for art show promise beyond speculation.

What’s Next for Vietnam Crypto?

The government pushes a national blockchain strategy. Pilot projects test CBDCs. Adoption stays high – Vietnam still tops Chainalysis indexes. But caution rules now.

Will history repeat? Only if lessons stick. As Hoang puts it, “Crypto isn’t dead. Just smarter now.”

Final Thoughts: Boom, Bust, and Beyond

showed the power – and peril – of digital money. Greed fueled the rise, reality triggered the fall. For investors worldwide, it’s a warning: Trade smart, or pay the price.

What do you think? Share your crypto stories in comments. Stay safe out there.

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.