There has been a significant sell-off in the cryptocurrency market over the past couple of weeks, which has led to a sharp decline in the fortunes of many investors.
The Winklevoss twins and other cryptocurrency billionaires, who had made significant investments in bitcoin, suffered the most. Indeed, according to Bloomberg, cryptomagnates have suffered significant damage as investors flee risky assets amid global economic turmoil.
On Thursday, May 12, the price of bitcoin was trading at $27,787, down 4 percent from the previous day and about 63 percent below the all-time high of $68,990 it hit last November.
According to the Bloomberg Billionaires Index, Coinbase CEO Brian Armstrong’s fortune fell to nearly $2.2 billion this week, a significant drop from about $13.7 billion last November, when the cryptocurrency market was on the rise.
Since March, the fortune of FTX cryptocurrency exchange founder and CEO Sam Bankman-Fried has halved, bringing his current net worth to about $11.3 billion.
Famous bitcoin supporters and founders of the cryptocurrency trading platform Gemini, brothers Cameron and Tyler Winklevoss individually lost more than $2 billion, equivalent to almost 40% of their combined fortune.
In recent months, the volatility of leading cryptocurrencies, such as bitcoin and ether, has even caught the attention of authorities. Cryptocurrency prices are now often falling at the same time as stocks of fast-growing tech companies, as investors’ appetite for risk declines.
Armstrong’s personal fortune declined along with Coinbase shares, whose price fell by more than 80% over the same period. Armstrong owns about sixteen percent of the company’s total shares.
Coinbase’s share price fell hard this week after the cryptocurrency exchange warned its users that the value of their cryptocurrency assets could be at risk if Coinbase is ever forced to declare bankruptcy.