In a context of strong turbulence in the cryptocurrency market, the situation is tense for crypto-billionaires.
Crypto-billionaires are going through a very bad patch in a context of strong turbulence in the cryptocurrency market.
It should not be forgotten that these new crypto-billionaires constitute a sought-after clientele for many sectors of the economy, particularly the American economy, whether in real estate or even luxury. And very rich billionaires, that’s nobody’s business. We are talking about potential loss of value, the bulk of the fortune of these crypto-billionaires being cryptocurrencies and shares of their company and for some even tokenized shares. One can in particular think of Elon Musk, whose company Telsa has kept all its bitcoins for a year in its treasury.
From 14 billion to 2.2 billion
Who are these crypto-billionaires drinking the mug right now? For example, cryptocurrency exchange Coinbase lost 27% yesterday after reporting its results and outlook. The two founders have seen their personal fortunes melt like snow in the sun: his boss Brian Armstrong sees his personal fortune drop from $14 billion last November, to just over $2.2 billion at the latest count yesterday , according to the Bloomberg Billionaires Index. This is logical: the latter has 16% of the capital alone and a lot of cryptocurrencies.
For his part, the co-founder of Coinbase, Fred Ehrsam, a former Goldman Sachs, has lost 60% of his fortune since the beginning of the year to 1.1 billion, and the same for the founders of exchanges. of competing cryptocurrencies, like FTX, its boss Sam Bankman-Fried has lost 50% of his personal fortune since the end of March, to $11.3 billion.
For their part, the Vinklevoss brothers, founders of the Gemini platform, lost 40% of their personal fortune, each losing $2.2 billion. These tenors for cryptos must not only face the fall in the value of crypto-assets, but also the mistrust of investors at the moment… And it is probably not over.