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Saturday, May 28, 2022

Bitcoin’s decline slashed the fortunes of major crypto billionaires

The Winklevoss twins and other crypto moguls betting big on bitcoin have seen their fortunes plummet during the market’s massive selloff in recent weeks.

According to Bloomberg, the crypto tycoon has been slammed by investors for dumping risky assets during the global economic turmoil. Bitcoin was recently trading at $27,787.20 on Thursday, down 4% from the day before and nearly 60 percent below its all-time high of $68,990.90 in November.

According to the Bloomberg Billionaires Index, Coinbase CEO Brian Armstrong’s net worth has dropped to nearly $2.2 billion this week – down from about $13.7 billion last November when the crypto market was consolidating.

Cameron and Tyler Winklevoss co-founded the crypto platform Germini.
Bloomberg via Getty Images

Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, has lost nearly half of his on-paper fortune since March and is now worth around $11.3 billion.

Cameron and Tyler Winklevoss, both the leading bitcoin brokers who founded crypto marketplace Gemini, have lost nearly 40% of their respective fortunes, or more than $2 billion each.

winklevoss twins
The Winklevoss twins have lost nearly 40% of their on-paper assets.
AFP via Getty Images

Michael Novogratz, CEO of crypto investment firm Galaxy Digital, has lost nearly $6 billion since last November and is currently worth around $2.5 billion.

According to data from CoinMarketCap, the sell-off has wiped out nearly $200 billion worth of crypto from the market.

Binance CEO Changpeng Zhao seems to have suffered the most. Bloomberg estimates that his fortune has dropped from $96 billion to $11.6 billion as recently as January.

Michael Novogratz
Michael Novogratz is the head of the crypto-focused firm Galaxy Digital.
Bloomberg via Getty Images

Major cryptocurrencies such as bitcoin and ethereum have drawn scrutiny from regulators in recent months due to their propensity for volatile trading. Lately, crypto sell-offs have often been accompanied by declines in high-growth tech stocks as investors lose their appetite for risk.

Armstrong’s personal fortune has fallen with Coinbase shares down more than 80% over the same period. Armstrong owns about 16% of the company’s shares.

This week, Coinbase stock fell sharply this week after the exchange warned customers that their crypto holdings could be lost if the company is ever forced to declare bankruptcy.

Brian Armstrong
Coinbase CEO Brian Armstrong tried to reassure customers this week.
Getty Images

The company also disclosed disappointing first quarter earnings that showed a decline in crypto trading volumes – a trend that was expected to continue in the current quarter.

Armstrong, in a series of tweets, aimed to reassure Coinbase customers about the health of the business – adding that the company was not at risk of bankruptcy that could put their holdings at risk. He added that Coinbase has issued a warning to comply with the updated SEC guidelines.

“Today we made some noise in our 10Q about a disclosure about how we hold crypto assets. Tl;dr: Your funds on Coinbase are safe, like they always have been,” Armstrong said.

World Nation News Deskhttps://www.worldnationnews.com
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