Crypto billionaires like Changpeng Zhao lose 80% of their assets

The total assets of the 7 billion richest cryptocurrencies in the world at the end of last year reached $145 billion, but now only $114 billion.

Cryptocurrency fever has turned Changpeng Zhao, Sam Bankman-Fried, Mike Novogratz, and many others into billionaires with an exponential increase in wealth. But soon after joining the wealthiest group in the world, their fortunes suddenly disappeared.

On November 9, 2021, the total assets of the world’s 7 billion richest cryptocurrencies reached $145 billion, when Bitcoin prices peaked at nearly $69,000. But so far, they have lost a total of $114 billion, according to the Bloomberg Billionaires Index, which represents a drop of nearly 80%.

Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange, once owned the world’s 11th largest asset pool, according to Bloomberg Billionaires Index. However, this figure is now down 89%, to just $10.2 billion. Binance has also become a focus of attention for US lawmakers looking to curb the cryptocurrency industry.

Bankman-Fried – the 30-year-old CEO of the FTX exchange, also recorded a 66% decline in assets since it peaked at $26 billion. According to Bloomberg, this could affect his plans to invest in politics. Bankman-Fried poured $16 million into the Super PACs in April. The billionaire also said it was expected to contribute more than $100 million in the next presidential election to support the Democrats.

Novogratz (57), head of Fortress Investment Group, is one of the most prominent names in the cryptocurrency market. The billionaire’s assets fell to $2.1 billion, lower than when it first appeared in the Bloomberg Billionaires Index in December 2020. At that time, Bitcoin traded for around $29,000.

Cameron and Tyler Winklevoss, meanwhile, recorded assets of just $3 billion each – down half from a peak of $5.9 billion. The two founders of the Gemini cryptocurrency exchange also announced this month that they would cut their staff by about 10%.

Coinbase founders Brian Armstrong (39) and Fred Ehrsam (34) recorded $18.1 billion of assets. But right now, they’re down to $2.1 billion each. The company’s stock has fallen 79% since the IPO.

Big bettors, such as Microstrategy CEO Michael Saylor or El Salvador President Nayib Bukele, are also finding it difficult to reduce the world’s most significant cryptocurrency price to $21,000 a coin – the lowest since December 2020.

Once considered a discovery that ushered in a new era of decentralized finance, cryptocurrencies are going through a difficult period due to several events. In May, the Luna ecosystem and stable cryptocurrency (stablecoin) TerraUSD collapsed. Recently, Celsius – one of the largest cryptocurrency lending platforms in the world – announced a freeze on all transactions. The move comes after the rumor that Celsius could not meet the promised margins on some products.

Global financial markets are in turmoil as the US Federal Reserve (Fed) and other central banks plan to hike interest rates sharply to contain the highest inflation in decades. This accelerates the cryptocurrency’s downward momentum.

Saylor said he still believes in cryptocurrencies. However, the software company he founded is recording record losses. Microstrategy started buying Bitcoins in 2020, now losing more than $1 billion at the cryptocurrency’s most recently traded price.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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