Cryptocurrency Billionaires Slash Their Fortunes
The cryptocurrency market has come under pressure so far in 2022, impacting fortunes large crypto billionairesas currencies have been dragged down by the sell-off in risky assets, due to concerns about high inflation and rising interest rates.
While almost all cryptocurrency holders have suffered wealth declines, some of the largest and most visible losses are concentrated among the founders of exchanges, where traders buy and sell digital currencies.
One of the most affected billionaires in the crypto market has been bryan amstrongfounder of Coinbase (NASDAQ:)the largest cryptocurrency exchange in the United States, who had a personal fortune of 13.7 billion dollars in November and about 8 billion dollars at the end of March.
However, his net worth now stands at $2.2 billion, according to the Bloomberg Billionaires Index, as a massive sale of digital currencies from a triggered a sharp drop in the market value of Coinbase.
In this way, the company’s shares recorded their worst day last May 11when they retreated 26.40%, to 53.72 dollars, marking their biggest drop since the company went public in April 2021.
The pullback came after the company warned that trading volume and monthly transaction users were expected to be lower in the second quarter than in the former, raising questions about Coinbase’s ability to withstand the sharp drop in cryptocurrency prices.
The above forced Armstrong to go to Twitter to defend the company.
There is no ‘bankruptcy risk’ even in the midst of a ‘black swan’ event and user funds are safe
said Armstrong, CEO of the firm.
Also read: The fall of cryptocurrencies: how much have the most popular lost in 2022?
CEO of Galaxy Digital and Binance also see their fortunes fade
Michael NovogratzCrypto Merchant Bank CEO digital galaxy he also suffered a $2.5 billion swoon in his fortune, from $8.5 billion in early November.
The same way, Chang Peng ZhaoDirector of BinanceClosely owned, he has lost an even larger fortune than either Armstrong or Novogratz, slashed to $11.6 billion from his $96 billion net worth in his debut on the Bloomberg Wealth Index.
Cryptocurrency exchanges in the United States seem to be suffering from a major recession than its global competitors. Trading volumes on Coinbase have been steadily declining since the beginning of the year, while Binance, which has a more international focus, saw a spike in volume last month.
Binance’s US-focused business, by comparison, saw even steeper declines than Coinbase’s.
Gemini and FTX founders add to the loss
Billionaires Tyler and cameron winklevossco-founders of rival cryptocurrency exchange Geminithey have each lost about $2.2 billion, or roughly 40%, of their fortunes this year.
Similarly, the fortune of Sam Bankman-friedcrypto exchange CEO FTXit has halved since the end of March to $11.3 billion.
Brian Armstrong isn’t the only Coinbase billionaire losing money, as co-founder fred ersamformer trader Goldman Sachs (NYSE:)it is currently worth $1.1 billion, cutting more than 60% this year.
Armstrong owns 16% of Coinbase and controls 59.5% of its voting shares, according to the company’s 2022 proxy statement, while Ehrsam has a 4.5% stake and controls 26% of its voting shares. to vote
Meanwhile, the fortunes of crypto billionaires who grew in the last two years are disappearing, and they will continue on that losing streak if the sell-off in tech stocks lasts longer.
Continue reading: Warren Buffett, Michael Burry and other Wall Street figures reveal their investments as of 1Q22
With information from Bloomberg
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