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Billionaire Crypto Investors Including Elon Musk and Brian Armstrong set to bear brunt of 'Crypto Bloodbath'

by Adam Pearson 2 months ago in bitcoin
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The founder of Coinbase has $11billion vanish from his personal wealth

Elon Musk

Some of the world's cryptocurrency billionaires are having their fortunes wiped out as the value of digital currencies plummets due to concerns about the global economy.

Trader Brian Armstrong, the founder of Coinbase and once worth $13.7 billion, has watched $11 billion go from his personal wealth as investors sold digital currencies amid fears of a new recession, soaring inflation, and global economic chaos.

As the great online currency crisis continues today, he and Tesla founder Elon Musk are among the billionaires whose assets have lost $20 billion in value, with one mega-rich trader apparently losing $800 million in a single day.

Tesla's $1.5 billion bet on Bitcoin in February has already paid off, with the projected value of the cryptocurrency now $300 million lower than it was 15 months ago.

Despite assuming crypto would be a safe haven during the pandemic, Mr Musk is one of four so-called "Crypto Bros" whose combined massive wealth, which has helped prop up the online currency market for years, has now taken the biggest blow. However, the Bitcoin market has lost more than $20 billion today alone.

Coinbase's stock has dropped 84% since its initial public offering in April 2021.

Michael Saylor, the CEO of software firm MicroStrategy, is one of the world's largest Bitcoin investors, with a fortune of $2.5 billion, down from an estimated $8.5 billion six months ago. According to Forbes, his net worth may now be less than $1 billion.

Tyler and Cameron Winklevoss, the twins famed for their long-running legal dispute with billionaire Mark Zuckerberg over who invented Facebook, as shown in the film The Social Network, have reportedly lost half of their fortune, dropping from $4.5 billion to $2.2 billion.

Michael Novogratz, the CEO of crypto merchant bank Galaxy Digital, may have seen his fortune collapse from $8.5 billion to $2.5 billion. He's a supporter of TerraUSD, an algorithmic stablecoin in danger of collapsing due to Luna's price drop in the same crypto 'environment.'

After the price dropped from $43,515 to $42,963 - a drop of $550 - one trader with 288,000 Bitcoin lost $800 million in just 24 hours. On Friday, the wallet, dubbed '34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo,' had $2.48 billion deducted from its $16.29 billion value.

Tesla has 43,200 bitcoins, which he paid $1.5 billion for in February 2021. According to the website bitcointreasuries.net, Elon Musk and his stockholders have lost around $300 million since then.

In recent days, crypto exchange owners like Brian Armstrong, the founder of Coinbase, who was once worth $13.7 billion, and siblings Tyler and Cameron Winklevoss have had billions wiped from their personal fortunes.

Michael Saylor, a tech CEO whose company, MicroStrategy, has gambled its future on the unpredictable Bitcoin, joins them. According to Forbes, Saylor's personal worth has dropped below $1 billion in recent days.

Meanwhile, after a 27% drop in its stock price, popular digital currency exchange Coinbase cautioned consumers that if the company goes bankrupt, they could lose all of their money. Its founder was obliged to defend the company's track record on Twitter amid fears that it may go bankrupt.

Previously high-flying tech equities have begun to plummet in value in recent months, fueling fears of a broader economic downturn and discouraging investors from purchasing assets.

Tesla's stock has dropped 36% in the last month as a result of reports that the eccentric CEO is trying to buy Twitter.

The electric vehicle manufacturer's stock is currently worth $734 (£600), down from $1145.45 (£937.69) a month ago.

Musk, a vociferous proponent of cryptocurrencies, has had a significant impact on the prices of Dogecoin and Bitcoin and had previously stated that the company would take Bitcoin for car purchases before abandoning those plans.

Musk's repeated tweets about Dogecoin, including one in which he referred to it as the "people's crypto," have turned the once-obscure digital currency into a speculator's fantasy.

Since the end of March, when it was trading at $48,000, Bitcoin, the world's most successful cryptocurrency, has lost nearly a third of its value and lost $300 billion in market capitalization.

Tesla and MicroStrategy, both American corporations, appear to be in line to take the brunt of the fall, as both hold tens of thousands of Bitcoin (BTC).

Bitcoin Treasuries, a website that tracks publicly traded businesses' cryptocurrency holdings, believes both Tesla and MicroStrategy's BTC portfolios have lost $300 million in value since their initial purchase.

Bitcoin was the first digital currency, launched in 2009 to circumvent central banks, and a growing number of branch currencies, as well as digital art known as non-fungible tokens, have emerged in recent years.

During the Covid epidemic, many amateur investors made money by buying equities and digital currencies, which were generally climbing in a so-called bear market.

Since January, Ethereum has lost more than half of its value, Bitcoin has lost a third of its value, and Luna has had 98 percent of its value wiped out overnight, prompting suicide hotlines to be pinned to the currency's Reddit page.

Exchange popular digital currency After a 27% drop in its stock price, Coinbase cautioned consumers that if the firm goes bankrupt, they could lose all of their money.

Today, digital currencies are losing value in a so-called "crypto winter" that has cost investors billions of dollars and is fueling worries of a larger stock market meltdown.

Ethereum, the world's second-largest cryptocurrency, has joined the crash, losing 20% of its value in the previous 24 hours, in the digital decline crushing investors who invested during the Covid years.

Cryptocurrencies are a type of digital money in which users invest in a unique piece of code created by mathematics.

Bitcoin was the first digital currency, launched in 2009 to circumvent central banks, and a growing number of branch currencies, as well as digital art known as non-fungible tokens, have emerged in recent years.

They've all dropped substantially in value in recent days, with one currency losing 98 percent of its value as anxieties about the global economy spread and investors begin to dump riskier assets.

Today alone, the cryptocurrency market has lost more than $200 billion.

However, investors in more traditional companies have suffered as well, with US tech firms such as Amazon, which has been down 30% in a month, plummeting in recent weeks.

The FTSE 100 was down 2.5 percent this morning as official numbers revealed that the UK economy grew slower than predicted in the first quarter, before reversing in the final month and falling by 2%.

During the Covid epidemic, many amateur investors made money by buying equities and digital currencies, which were generally climbing in a so-called bear market.

Since January, Ethereum has lost more than half of its value, Bitcoin has lost a third of its value, and Luna has had 98 percent of its value wiped out overnight, prompting suicide hotlines to be pinned to the currency's Reddit page.

Exchange popular digital currency After a 27% drop in its stock price, Coinbase cautioned consumers that if the firm goes bankrupt, they could lose all of their money.

Investors bought riskier assets like cryptocurrencies with better rates of return during the epidemic because of record-low interest rates intended to strengthen economies.

As a result of rising interest rates in response to rising inflation, these assets are being traded in favour of safer government bonds that will deliver better yields.

On May 5, the Bank of England raised interest rates by 0.25 percent to a 13-year high of 1%.

On May 4, the Federal Reserve hiked interest rates to 1%, with more increases projected to ward off the worst effects of inflation.

The NASDAQ fell by the most in a single day since June 2020 earlier this week, implying that crypto and regular markets are becoming more integrated.

The index, which includes some well-known internet companies, closed trading on May 5 at $12,317.69, with retail sites like Etsy and eBay driving the decline.

After disclosing lower-than-expected sales predictions, the two companies' stock prices fell 16.8% and 11.7 percent, respectively.

Previously high-flying tech equities have begun to plummet in value in recent months, fueling fears of a broader economic downturn and discouraging investors from purchasing assets.

Tesla's stock has dropped 36% in the last month as a result of reports that the eccentric CEO is trying to buy Twitter.

The electric vehicle manufacturer's stock is currently worth $734 (£600), down from $1145.45 (£937.69) a month ago.

Musk, a vociferous proponent of cryptocurrencies, has had a significant impact on the prices of Dogecoin and Bitcoin and had previously stated that the company would take Bitcoin for car purchases before abandoning those plans.

Musk's repeated tweets about Dogecoin, including one in which he referred to it as the "people's crypto," have turned the once-obscure digital currency into a speculator's fantasy.

The fear over cryptocurrency's future contributed to slower transactions on Binance, a cryptocurrency exchange.

Crypto traders decried Binance's ill-timed scheduled maintenance,' with several users on social media accusing the corporation of a premeditated plot to prevent them from trading their assets.

'Since the March 23, 2020 market low, Dogecoin has perhaps surprise led price performance, barely outperforming Tesla,' said EToro global market strategist Ben Laidler.

'In the meantime, despite its recent slump, bitcoin, the market's largest crypto asset, has outperformed other major tech firms, beating out Apple, Amazon, and Meta.'

After Musk uploaded a barrage of memes promoting the joke money, the token's price soared by about 4,000 percent in 2021.

Amazon's shares have dropped 30% since April 11, with the stock currently trading at $2104.36 (£1725.19), down from $3011.34 (£2468.75).

The decline in these companies has fueled fears that the 'dot-com bubble explosion' of the early 2000s is likely to happen again.

Increased computer and internet access in the late 1990s led to large-scale speculative investing in online companies.

As a result of the interest, companies with the '.com' suffix have become extremely valuable.

Following the increase in interest rates by the US Federal Reserve after the 1990s boom, speculative trading plummeted, causing the dot-com bubble to collapse and prices to plummet.

Crypto exchanges, which house the 'blockchain' ledgers that record transactions, are already seeing a significant decline in activity.

Regardless of the outlook, crypto traders have flocked to social media to mock the meltdown, advise others not to sell, and, in some cases, lament their losses.

Several posts on the r/terraluna subreddit detailed investors' losses, with some claiming they could lose their homes or their whole life savings.

The administrators of the online investing group had to pin suicide hotlines to the top of the investor forum.

Several of these memes have included the term 'HODL,' which stands for "Hold On for Dear Life," which gained popularity during past crashes when traders gambled their assets on the currencies recovering.

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Adam Pearson

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Nice work

Very well written. Keep up the good work!

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