- Cryptocurrency billionaires have had their fortunes erased in a matter of weeks as the price of the digital currency are on a massive decline
- Founders of crypto exchanges are the hardest hit as they see their personal fortunes destroyed dues a selloff that hit the industry
- Changpend Zhao, the founder of Binance, the world's largest crypto exchange, was worth about $96 billion in November has his wealth reduced to $11 billion
The crypto world has taken a hit in recent weeks as investors saw their fortunes plummet to abysmal levels, the worst since 2018, according to experts.
Loses $2 billion in two weeks
The founder of Coinbase Inc., Brian Armstrong was worth about $13.7 billion as recently as November 2021 and by the end of March 2022, he had $8 billion. But now, he has $2.2 billion to his name, Bloomberg Billionaire’s Index said, after a selloff was triggered in the digital currency industry. From Bitcoin to Ether, there was a sharp decline in the market value of the firm, Coinbase, the biggest crypto exchange in the US.
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The company’s shares have fallen by 84 per cent since they debuted trading in April 2021, closing on Wednesday, May 11, 2022, at $52.73 after the firm cautioned that trading volume and monthly users were expected to drop in the second quarter of 2022.
According to Bloomberg, Armstrong took to Twitter to dispel fears and defend the company and said there is no risk of bankruptcy.
The CEO of the crypto merchant bank, Galaxy Digital has seen his wealth plunge to $2.5 billion from $8.5 billion in early November 2o21. He has championed TerraUSD, the stablecoin that is not been feared might collapse in the midst of a breakdown in the price of a crypto token, Luna.
Crypto billionaires have seen their fortune swell over the last two years and are fast disappearing after a sell0ff that started when the tech stock poured over into digital currency.
From $96 billion to $11 billion in 6 months
Bitcoin, the world’s largest crypto and Ether have both plunged more than 50 per cent since they climbed to about $60,000 last year.
While most crypto investors have suffered a decline in wealth, some of the biggest and most obvious losses are focused on exchange founders where traders buy and sell digital currencies.
The founder of Binance, Changpend Zhao has lost even more personal fortunes than most exchange founders.
He first appeared on Bloomberg Billionaires Index in January this year with a net worth of $96 billion as one of the world’s largest.
By Wednesday, May 11 2022, his wealth has plunged to $11.6 billion.
I Was halfway to becoming a billionaire-then I lost everything in 5 minutes, crypto trader shares his story
Legit.ng has reported that a cryptocurrency investor has shared his experience of how he became poor again in less than 5 minutes of becoming rich.
Using a popular social media website, the anonymous Reddit user claimed he made $1.3million (N532.97 billion) after investing in SQUID, the digital currency inspired by the Netflix series Squid Game.
But after seeing its value rise to over a 2 million dollars in a flash the coin's value dropped to $0