There was a time when digital currency billionaires were heavy on the crypto landscape. However, the numbers have been reducing, ever since the crypto winter began. With it showing no signs of abating, existing billionaires are being reduced to millionaires. It is a reference to an extremely intelligent, investment and trading website.
An observation of the Forbes 400 list, catering to the wealthiest in the U.S., displays some startling facts. There were seven crypto billionaires on the list in 2021. By 2022, the number reduced to four. Similarly, the combined wealth of seven billionaires, went down to $27.3 billion, from $55.1 billion.
A Drastic Turn of Events
The ruination of the Terra blockchain, triggered the collapse of plenty of digital currencies. One amongst them, is Bitcoin (BTC). Its pricing has dropped down by over 70%. In June 2022, BTC displayed a pricing of $18,000. It had been at a record all-time-high in November 2021, registering $69,000.
This global favorite is still vacillating between high and low, as evinced by the knowledge displayed.
Obviously, since Bitcoin has collapsed, other significant coins/tokens are bound to experience pricing plunges too. For instance, Ethereum has gone down by 75%, from a glorious all-time high. Similarly, BNB, SOL/Solana, and ADA/Cardano, are in the docks, too.
Coinmarketcap data states that the value of digital assets has plunged to $967 billion. It stood at $3 trillion in November 2021. It is all due to the bearish run in the marketplace, which was unprecedented.
The current scenario is the outcome of a conglomeration of dubious decisions/projects undertaken by cryptocurrency founders, difficult macroeconomic conditions, and geopolitical tensions. Therefore, investors and traders are wary and apprehensive.
Everything may be summed up in two words, according to a special tool – Extreme fear. The tool is the Bitcoin Fear and Greed Index. It keeps a keen watch on momentum levels in the digital assets industry.
The Dwindling Fortunes of Former Crypto Billionaires
The elite, or the wealthy, prefer Bitcoin (BTC) to any other coin/token. Naturally, with its collapse, several billionaires are confronting dwindling fortunes. Here are two of them.
Chris Larsen
He is the 62-year-old chairperson, and co-founder of Ripple Labs. It is a firm handling payment via digital currencies. The previous year has been quite traumatic for Larsen. His net worth was reduced to $2.8 billion. Earlier, he had $6 billion in his bank account. It was all because of the collapse of XRP, Ripple’s native token. Its pricing had dropped by 75%.
Fortunately, Ripple may yet recover its former glory. Crypto enthusiasts know that the company had been engaged in a long-standing battle with the U.S. Securities and Exchange Commission (SEC). However, the U.S. courts ruled in the company’s favor, just recently. Therefore, XRP’s pricing has risen by over 30%. Today, it is selling at $0.4595.
Regardless, Forbes still considers him valuable enough, to place him at the 380th rank in their list of 400 billionaires.
Sam Bankman-Fried
FTX, the cryptocurrency exchange, exists, because of 30-year-old Sam Bankman-Fried. He is its CEO, and co-founder. His fortune totaled $22.5 billion, in 2021. However, it has reduced by 23%, now. Nevertheless, the billionaire’s net worth remains noteworthy, at $17.2 billion. The Forbes 400 list awards him a rank of 41, since Bankman-Fried is the richest amongst crypto billionaires.
His wealth grows, because he is generous in sharing with others! For instance, the billionaire donated $16 million to super PACs (medical imaging technology), in April 2022. Similarly, he lent $400 million in the form of FTX, to BlockFi. This was in June 2022, when the company was desperate for funds. The company had put itself up for sale, at a price of $240 million.
Another organization that became the recipient of his generosity, was Voyager Digital. The loan totaled $500 million, and went through Bankman-Fried’s company, Alameda Research.
The billionaire owns FTX worth $2 billion, and plans to acquire whatever catches his fancy! He also wishes to donate to the Democrats, at the time of the next U.S. Presidential election. The amount set aside for this purpose is between $100 million and $1 billion.
Apart from these, there are Gary Wang (co-founder of FTX, and Alameda Research), both the founders of Gemini, Coinbase’s owner, etc.