The crypto craze has catapulted many of the biggest names in the industry to rapidly becoming crypto billionaires. But even owning a huge amount of assets does not mean they will forever maintain their value.
Crypto billionaires suffer heavy losses
Once seen as a factor that opened a new era for global finance, cryptocurrencies have been experiencing extreme “shakes” due to crashes, starting with dominoes.” LUNA-UST”.
The idea that the collapse of the Terra ecosystem is the most significant loss the market has suffered, but not stopping there, many stablecoins have lost 1 USD in turn, creating a trend wave de-peg”.
DeFi platforms also took turns “suffering”, from Elrond (EGLD) being attacked, down 92%, to Optimism (OP) mistakenly transferring 20 million OPs and then being stolen by hackers, to the founder of Synthetix project. (SNX) “wrongly burned” 10 million DAI…
The market has undergone a continuous “FUD” from all aspects of the industry. The most recent “chain effect” stETH – Alameda – Celsius.
Not only the cryptocurrency market but the global economic situation is also chaotic. Contrary to the 8.3% forecast given by analysts, US inflation in May 2022 continued to escalate to 8.6% from 8.3% in April, showing measures The Fed’s market regulation is still not strict enough.
The loss has forced some billionaires to streamline their human resources, such as Coinbase, Gemini, BitMEX, Rain Financial or, most recently, Crypto.com and BlockFi.
Many major players have entirely bet on Bitcoin. Now it is hard to breathe a sigh of relief as the price of the world’s largest coin has approached the $ 20,000 mark this morning, which is the lowest price since December. 2020.
The giant whales also suffered heavy losses
The seven billionaires whose fortunes are tied to cryptocurrencies each reached a combined net worth of $145 billion on November 9, when Bitcoin hit a record high of nearly $69,000. After eight months, that fortune has evaporated by $114 billion, according to the Billionaires Index measured by Bloomberg.
Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, said he would continue expanding his recruitment strategy. This 44-year-old man once owned the 11th largest fortune in the world but has since lost 89% of its value to $ 10.2 billion. Currently, Binance is also facing many FUDs surrounded.
Sam Bankman-Fried, the 30-year-old CEO of crypto exchange FTX, has reduced his asset position by 66% since his pocketbook peaked at $26 billion. Regarding “huge” acquisitions, FTX is the representative that has become familiar with this playground. With the ambition to “expand” globally, the CEO once declared his willingness to spend billions of dollars on any future acquisitions.
Mike Novogratz, 57 years old, CEO of Galaxy Digital fund, has returned to the cryptocurrency race after many stumbling blocks in the past and once called Terra a “big idea that failed”. His fortune has dropped to $2.1 billion. Mike challenged Euro Pacific Capital CEO Peter Schiff to a $1 million bet on Bitcoin (BTC) futures earlier this year.
Cameron and Tyler Winklevoss, twin brothers who co-founded the Gemini exchange, also lost $3 billion each, down nearly 50% from $5.9 billion. Gemini has also begun cutting about 10% of its workforce over the past month.
Coinbase Global Inc., the largest cryptocurrency exchange in the United States, has removed its job postings due to a lousy market turn. Coinbase CEOs Brian Armstrong, 39, and Fred Ehrsam, 34, were once worth $18.1 billion. Their fortunes are now just $2.1 billion each. The company’s shares have fallen 79% since its initial public offering.
On the traditional side, Bitcoin-loyal whale MicroStrategy has also lost much wealth, and the share price has plummeted as much as 88%. As a result, MicroStrategy has “evaporated” more than 1 billion USD. In the latest interview about a week ago, MicroStrategy CEO Michael Saylor still confidently stated that Bitcoin’s short-term downturn is not a “problem” too big for the company.
The situation is similar to the first country’s president to legalize Bitcoin, Nayib Bukele. El Salvador’s 2,301 Bitcoin holdings did not escape the “tragedy”, even though the loss in percentage was the largest among the companies just mentioned, amounting to more than 50% (loss of 53.1). Million dollars). However, the case of El Salvador is considered to be much more dangerous than MicroStrategy because the level of influence will cover the national scale, not simply in terms of companies or organizations.
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