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Tips - March 30, 2022

5 People who Lost the Most Millions in Cryptocurrency

As of late 2021, some well-known people lost millions of dollars in cryptocurrency, worth $26.9 billion.

According to CoinMarketCap, Bitcoin fell by 50% in late 2021. This was after having an all-time surge of $68,622 and trading at $34,326 with a later rise to $36,000.

As a result, Coinbase Global’s stock lost 42% from Bitcoin’s high, from $328 per share to just $191 by the end of January 2022.

In less than three months, the entire market value of all cryptocurrencies fell from about $3 trillion in late 2021 to $1.7 trillion in January 2022, marking a 43% drop.

As a result of the drop in cryptocurrency, crypto analysts believe that the industry will experience a fall in share prices as the central bank toughened and increased bond rates decrease.

Here are some notable people who have lost millions to the plunge in cryptocurrency.

Sam Bankman-Fried

He is the founder of FTX, and due to his FTX exchange and Alameda Research trading business, Sam Bankman-Fried has become the richest person in crypto.

In July 2021, FTX secured $900 million at an $18 billion valuation from investors including Coinbase Ventures and SoftBank, making Bankman-Fried one of the wealthiest persons under 30.

Sam Bankman-Fried’s net worth was $26.9 billion in November 2021, but it decreased to $17 billion in early 2022, representing a 37% loss.

RELATED: 10 Top Cryptocurrencies to Buy Under $5 in 2022

Brain Armstrong

Brian Armstrong is the CEO of Coinbase Global, the largest bitcoin exchange in the United States.

On April 14, 2021, Coinbase went public through a direct offering on Nasdaq, temporarily surpassing a market capitalisation of $100 billion. 

Armstrong has a 19% hold of Coinbase, which made $322 million in earnings on roughly $1.3 billion in revenue in 2020.

Brain Armstrong’s net worth was $13.5 billion in November 2021, but it decreased to $7.9 billion in early 2022, representing a 41% loss.

Chris Larsen

Chris Larson co-founded Ripple with Jed McCaleb. He started in 2018 with about $60 billion after designing a coin that people exchange. The coin sold at $3.10 at the time, but it dropped to 45 cents, leading to a $44 billion loss.

Chris Larsen’s net worth was $6.1 billion in November 2021, but it decreased to $3.8 billion in early 2022, representing a 38% loss.

The Winklevoss Twin

Tyler and Cameron Winklevoss are the founders of Cryptocurrency Exchange Gemini, with investments in bitcoin and Ethereum. They had a $5 billion net worth in November 2021, which plummeted to $3.8 billion in January 2022, representing a 24% fall.

Fred Ehrsam

In 2012, Ehrsam and Brian Armstrong co-founded the bitcoin exchange Coinbase. Ehrsam departed the firm in 2017 but is still on the board of directors and owns around 6% of the company’s equity. 

In 2018, Ehrsam co-founded Paradigm, a cryptocurrency investing business with over a billion dollars in assets. In November 2021, his net worth was $4 billion but decreased to $2.3 billion in early 2022, representing a 43% loss.

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