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Crypto billionaires who were enjoying the high waves in November last year have seen their fortunes shrink in just a few days as cryptocurrencies have continued their downward slide since last week, Fortune reported.
Cryptocurrency volatility is not news to cryptocurrency investors. In the past, the government's anti-currency directives caused serious accidents. However, this time around, the threat comes not from a single government but from fears of a recession. Conventional investors who had experimented with crypto parts so far have now abandoned them as cakes.
The decline of the crypto market is ongoing.
Fears materialized last week when the US Federal Reserve announced tighter monetary policy. Bitcoin, the most popular cryptocurrency, which had been hovering over the halfway point of its November high for a few months, took a further dip. The aether was no different and also plunged.
The slide continued over the weekend, and while bitcoin appears to have found a few feet around $30,000, yesterday terrausd appears to be going through periods of uncertainty. As a stable coin, Terra is linked to the United States Dollar and its value was not expected to fall below $1. As of Thursday afternoon, it has dropped to cents, CNET reported. With the prevailing uncertainty, investors continued to sell crypto parts, capturing $200 billion in market share in a single day.
Cryptographic billionaires hit the nail on the head?
The most visible impact of those sales was obvious on the fortunes of crypto billionaires. Founding coinbase, Brian Armstrong, had a net worth of 13.7 billion dollars last November, which reduced to 8 billion dollars that Bitcoin lost some of its reflections. With the last collapse, personal wealth amounts to 2 billion dollars.
What is worse is that Armstrong had to reach out to the public over Twitter to allay fears that his venture that he had taken public only last year would not go bankrupt.
Michael Novogratz, a staunch defender of terra usd, now has a personal fortune of 2.5 billion dollars, contrary to last November's 8.5 billion dollars. The cryptocurrency that he supported with so much passion is now on the verge of collapse.
The losses of Armstrong and Novogratz are overshadowed by what Changpeng Zhao, the CEO of Binance, is experiencing. Zhao made a big entry to the billionaire bloomberg index in January of this year with a personal wealth of 96 billion dollars. By Wednesday it was down to $11.6 billion.
Tyler and Cameron Winklevoss, co-founders of crypto exchange Gemini, have sold 40 percent of their wealth since the beginning of this year, while Sam Bankman-Fried, the crypto billionaire, who wants to give away most of his wealth, saw it reduce by nearly 50 percent, between March and now.
It's a very challenging time for billionaires in cryptography.
