Fortunes Of Bitcoin Billionaires Nosedive During Market Rout

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Bitcoin’s biggest investors are counting their losses. But not all crypto tycoons are injured.

Bitcoin’s 30% decline in value since early March has stolen more than $ 1.4 billion from the fortunes of four Bitcoin billionaires, Forbes calculates, while the net worth of other crypto moguls has risen.

The Winklevoss twins are both $ 300 million poorer due to the Bitcoin crash. MicroStrategy CEO and Bitcoin enthusiast Michael Saylor saw his wealth fall by over $ 300 million. And venture capitalist Tim Draper lost $ 500 million.

After Bitcoin fell below $ 30,000 on Monday, Bitcoin rebounded to $ 34,113.08 on Wednesday morning. Bitcoin’s price is still 47% lower since mid-April and 21% since last Tuesday after Chinese authorities ordered the shutdown of crypto mining operations and urged financial institutions not to offer crypto services. The latest guidelines reflect an escalation in the Chinese government’s 2013 campaign to curb Bitcoin transactions.

The Winklevoss twins have lost $ 600 million since March when Bitcoin slumped.

Photo: Michael Prince for Forbes

Since peaking at $ 2.5 trillion on May 12, the market value of all cryptocurrencies has almost halved in just five weeks, losing a corresponding dollar amount of Indonesia’s annual GDP. The crash appears to be driven by Tesla co-founder Elon Musk, who is eschewing Bitcoin for its environmental impact, tightening regulatory scrutiny in various jurisdictions, and showing a cyclical trend away from risk-driven assets as the economy recovers from the pandemic.

Despite declining conditions, the wealth of crypto billionaires has moved in different directions. When Forbes estimated the net worth of 12 crypto billionaires for the annual World’s Billionaires List on March 5, they were worth $ 37.3 billion, while Bitcoin was worth $ 49,207.77 each. Today Bitcoin is trading at just $ 34,113.08, but their collective net worth has grown to $ 39.5 billion. Six billionaires’ fortunes fell while four their fortunes grew and two stayed the same.

So the fortunes of crypto billionaires changed from March 5 to June 23 (today’s ratings were calculated using asset prices at 8:30 a.m. ET).

Sam Bankman-Fried:

March: $ 8.7 billion

Today: $ 8.3 billion

Change: $ -400 million

The 29-year-old founder of the quantitative trading company Alameda Research and the cryptocurrency derivatives exchange FTX lost $ 400 million during the crash. Most of Bankman-Fried’s assets are tied up in FTX’s stocks and tokens (FTT).

Brian Armstrong:

March: $ 6.5 billion

Today: $ 8.5 billion

Change: + $ 2 billion

Coinbase’s CEO’s net worth grew by $ 2 billion thanks to his company’s $ 86 billion IPO in April. Coinbase stock is down 36% from its mid-April high of $ 342, which equates to the overall crypto market and saves a few billion dollars on Armstrong’s net worth.

Cameron and Tyler Winklevoss

March: $ 3 billion each

Today: $ 2.7 billion apiece

Change: – $ 300 million each

The twin founders of the Gemini cryptocurrency exchange each lost $ 300 million in the latest crypto crash. In April, Forbes sold its magazine cover for the 2021 World’s Billionaires issue, which featured the Winklevoss siblings as non-fungible tokens. The token, entitled “Merchants of the Metaverse”, fetched 333,333 US dollars at auction on their digital art platform Nifty Gateway.

Chris Larsen

March: $ 3.4 billion

Today: $ 4 billion

change: + $ 600 million

The chairman of Ripple Labs has grown his net worth by $ 600 million thanks to the spring push from XRP. Larsen was significantly richer in April when XRP hit an all-time high of $ 1.83. The remittances-focused coin has fallen 64% since then, but remains up 177% year-to-date, filling Larsen’s pockets.

Michael Saylor

March: $ 2.3 billion

Today: $ 1.97 billion

Change: $ 330 million

The Bitcoin slump stripped more than $ 300 million from MicroStrategy’s CEO. On June 21, MicroSrategy, a business intelligence company and the largest Bitcoin owner, bought an additional 13,005 bitcoins for about $ 489 million, bringing its total holdings to over 100,000 BTC. The company’s shares fell 7.5% on the announcement, signaling investor uncertainty about the company’s recent investments in the current climate.

Jed McCaleb

March: $ 2 billion

Today: $ 2.5 billion

Change: + $ 500 million

McCaleb, another Ripple co-founder, is $ 500 million richer due to the resilience of XRP. The crypto entrepreneur founded the first major crypto exchange in 2010 and would be even richer if Stellar Lumens, the cryptocurrency he co-founded in 2014, hadn’t fallen 44% since March.

Changpeng Zhao

March: $ 1.9 billion

Today: $ 1.9 billion

Change: N / A

The founder and CEO of Binance, the world’s largest cryptocurrency exchange, has protected his fortune amid the sell-off. Binance Coin (BNB), the native token of the blockchains of the company Binance Chain and Binance Smart Chain, has become the third largest cryptocurrency by market capitalization after Bitcoin and Ethereum. The NBB jumped from $ 38 in January to just under $ 700 in May, growing 18x in less than six months.

Fred honestly

March: $ 1.9 billion

Today: $ 2.9 billion

Change: +1 billion US dollars

The Coinbase co-founder who became a crypto venture capitalist is $ 1 billion richer since March. Unlike many of his billionaire counterparts, Ehrsam has raised concerns about the market foam. This week he predicted the demise of many smaller cryptocurrencies and warned against investing in NFTs (non-fungible tokens).

Barry Silbert

March: $ 1.6 billion

Today: $ 1.6 billion

Change: N / A

The CEO of the crypto conglomerate Digital Currency Group (DCG), which he founded in 2015, is one of two billionaires on the list who have maintained the status quo. DCG’s holdings include asset management firm Grayscale, which controls bitcoin, ether, and other assets valued at more than $ 40 billion, crypto news site CoinDesk, and crypto broker Genesis Trading.

Matthew Roszak

March: $ 1.5 billion

Today: $ 1.4 billion

Change: – $ 100 million

Roszak is a long-time crypto investor with a diverse portfolio of tokens, making his fortune vulnerable to broader market slumps. Roszak said this week that China’s crackdown on cryptocurrency creates “a lot of opportunity” for the US and the rest of the world.

Tim Draper

March: $ 1.5 billion

Today: $ 1 billion

Change: – $ 500 million

The venture capitalist injected $ 18.7 million on about 30,000 bitcoins in 2014. Draper’s concentrated portfolio makes him vulnerable to Bitcion’s volatility. If the token falls back below $ 30,000, Draper will say goodbye to Crypto’s three-point club.