Key Ideas:
- Even the richest in the sector suffered greatly; the top 17 crypto billionaires, per the most recent Forbes survey, saw a loss of $116 billion in net worth.
- For Barry Silbert, the looming bankruptcy of DCG contributed to the steep drop in his net worth. Due to its $2 billion debt, DCG is reportedly having problems obtaining the additional money it requires to remain viable.
- Cryptocurrency investors like Nikil Viswanathan and Joe Lau of Alchemy, Devin Finzer and Alex Atallah of OpenSea, and Nikil and Alex Atallah of OpenSea are no longer billionaires.
SBF - In 2022, the bitcoin market completely collapsed. Even the richest in the sector suffered greatly; the top 17 crypto billionaires, per the most recent Forbes survey, saw a loss of $116 billion in net worth.
The loss was caused by both the bear market and the failure of numerous cryptocurrency enterprises. Due to the substantial loss, 10 of the 17 crypto billionaires were dropped from the list.
The most notable omission is the disgraced founder of FTX, Sam Bankman-Fried. At the start of the year, SBF's market value was roughly $24 billion, while FTX had recently closed a $400 million financing round, giving it a $32 billion valuation.
But less than a year later, FTX declared bankruptcy, and SBF is now worth next to nothing. In his account, he claims to have less than $100,000, and he is unsure of how he would pay his lawyers.
However, he is not the only crypto billionaire whose wealth has vanished in the previous 12 months. The list also includes Barry Silbert of the Digital Currency Group and Gary Wang, the CTO of FTX (DCG).
Barry Silbert's approaching bankruptcy at DCG, according to Forbes, was a contributing factor to the steep decrease in his net worth. Due to its $2 billion debt, DCG is reportedly having problems obtaining the additional money it requires to remain viable.
According to Forbes, until Silbert's cryptocurrency company is able to escape its current situation, his 40% ownership in DCG is essentially useless.
The Value of Binance's CEO Declines
The person whose wealth has dropped the most recently is Changpeng Zhao, the founder and CEO of Binance. He had a $65 billion net worth this year, according to Forbes. He is still the richest crypto billionaire thanks to his current net worth of $4.5 billion, though.
For a number of reasons, including the failure of companies that Binance invested in, such Terra Luna and FTX, his net worth has fallen. Customers and authorities are also doubting the financial stability of CZ and Binance.
Furthermore, it has been asserted that the exchange might have assisted in the commission of financial crimes. Due to his ownership of 70% of the exchange, CZ's net worth has been harmed by Binance's diminishing fortune.
Other exchange entrepreneurs with declining net worth included the Winklevoss twins and Coinbase's founders.
Cryptocurrency investors like Nikil Viswanathan and Joe Lau of Alchemy, Devin Finzer and Alex Atallah of OpenSea, and Nikil and Alex Atallah of OpenSea are no longer billionaires. Tim Draper and Michael Saylor are two other people who have made large Bitcoin investments.
The only crypto billionaire this year who the market hasn’t adversely impacted is Jed McCaleb. The co-founder of Ripple’s net worth decreased from $2.5 billion to $2.4 billion as a result of selling the majority of his crypto holdings.
