Coinbase Global Inc. Founder Brian Armstrong has a net worth of $ 13.7 billion, and $ 8 billion by the end of March. This is now just $ 2.2 billion, according to the Bloomberg Billionaires Index, after Bitcoin selloff from ether to digital currencies Coinbase, triggered a slowdown in the market price of the largest U.S. cryptocurrency exchange.
The company’s shares are down 84% after closing on $ 53.72 on Wednesday, after warning that the stock’s trading volume and monthly trading volume are expected to be lower than in the second quarter.
Forcing Armstrong to take the company to Twitter to defend himself, he raised questions about Coinbase’s ability to withstand the sharp fall in crypto prices. “There is no risk of bankruptcy,” said Armstrong, the company’s chief executive.
Then there is Michael Novogratz. The cryptocurrency assets of Crypto Merchant Bank have declined from $ 8.5 billion in early November to $ 2.5 billion. He became the champion of TerraUSD, and the cryptocurrency token, which is now at risk of complete collapse, is at the same price.
At the Bitcoin 2022 conference in Miami, Novogratz April 6, he said: “I am the only person in the world who has done Bitcoin and Luna tattoos.
Billionaire Crypto’s fortunes have plummeted over the past two years after the sale of tech stocks to digital currency. Bitcoin, the most popular cryptocurrency and ether have both fallen by more than 50% since their record last year.
Almost all crypto-currency holders are in a recession, and some of the biggest and most visible losses are among the exchange founders where traders buy and sell digital currencies.
At least on paper, Binance, the closest Binance CEO, has lost more wealth than Armstrong or Novogratz. In January, it posted a net worth of $ 96 billion on the Bloomberg Wealth Index. On Wednesday, that fell to $ 11.6 billion, the average enterprise price for Coinbase and Canadian crypto firm Voyager Digital.
Crypto exchanges in the US appear to be falling sharply than their international competitors. Trading on Coinbase has been steadily declining since the beginning of the year, with Binance, the most internationally focused, rising in volume last month. Binance’s US-based business has suffered a setback compared to Coinbase’s.
Tyler and Cameron Winklevos, co-founders of cryptocurrency exchange Gemini, each lost nearly $ 2.2 billion – or approximately 40% – this year. Sam Bankman-Fried, chief executive of crypto exchange FTX, has fallen by half to $ 11.3 billion since the end of March.
Armstrong is not the only Coinbase billionaire to lose money. Former Goldman Sachs Group Inc. co-founder Fred Ersham is currently worth $ 1.1 billion, down more than 60 percent this year.
Armstrong controls 16% of Coinbase and 59.5% of the voting shares, according to the company’s 2022 proxy statement, while Ehrsam controls 4.5% and controls 26% of the vote.
Coinbase’s bonds have also fallen, recently trading in some of the most dangerous garbage-rated notes.