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Top 7 Crypto Billionaires Lose a Combined $114 Billion

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Binance CEO

Fortune of top seven crypto billionaires plunged with cryptocurrency crash as market uncertainties amid rising interest rates dragged on capital inflow into the cryptocurrency market.

According to Bloomberg’s recent report, the top 7 crypto billionaires have lost a combined $114 billion to the present crash and it could get worse.

Changpeng Zhao, the world’s richest cryptocurrency investor and the CEO of Binance, was reported to be worth $95.8 billion in 2021. Presently, the CEO of the biggest cryptocurrency exchange company with investment in Bitcoin and BNB coins, worth $10.2 billion. Meaning, the billionaire has lost $85.6 billion since the cryptocurrency crash started last month.

Samuel Bankman-Fried, the 29-year-old co-founder and chief executive officer of FTX cryptocurrency exchange firm, has seen his net worth decline by $6.2 billion from $15.1 billion reported in November 2021 to $8.9 billion in June 2022, according to Bloomberg Billionaires Index.

Brian Armstrong, the CEO of Coinbase, is presently worth $2.1 billion after the company announced it was cutting staff strength by 18% because of the plunge in cryptocurrency value.

In 2021, Bloomberg estimated Armstrong’s net worth at $13.7 billion shortly after Coinbase was listed on NASDAQ. Since listed, Coinbase’s stock value has plunged by $290.42, or

In the first quarter alone, revenue dropped by 35.28% to $1.17 billion while net income dipped by 155.69% to -$429.66 million. Highlighting the level of uncertainty in the cryptocurrency space.

Other billionaires on the list also suffer losses, Mike Novogratz, CEO of Galaxy Investment Partners which focuses on cryptocurrency investments, and Fred Ehrsam, co-founder of cryptocurrency investment firm Paradigm and Coinbase, worth $2.1 billion each as shown below.  See the top 7 crypto billionaires below.

List of Top 7 Crypto Billionaires 

Billionaires Net Worth as of 9 Nov. 2021 Net Worth as of 13 June 2022
Changpeng Zhao $95.8B $10.2B
Samuel Bankman-Fried 15.1B 8.9B
Brian Armstrong 13.7B 2.1B
Mike Novogratz 8.5B 2.1B
Fred Ehrsam 4.5B 2.1B
Tyler Winklevoss 3.8B 3.0B
Cameron Winklevoss 3.8B 3.0B

 

 

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Dangote’s Fortune Skyrockets by $15.1 Billion to $27.8 Billion

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Aliko Dangote - Investors King

Aliko Dangote, Chairman of Dangote Industries, saw his net worth surge by $15.1 billion on Thursday to $27.8 billion, according to the latest Bloomberg Billionaire Index.

Before factoring in his Dangote Refinery, Dangote’s net worth was estimated at $12.8 billion.

“The Dangote Refinery outside Lagos is the largest single-train oil refinery in the world and one of the most complex, capable of processing most global crude types. It has the potential to transform Nigeria’s economy by making the country self-reliant for fuel. And it’s more than doubled his net worth to $27.8 billion,” Bloomberg reported.

According to Bloomberg, Dangote’s current net worth is the largest wealth increase among the top 500 billionaires listed on the index.

Commenting on the refinery in New York last month, the 67-year-old Dangote said, “I didn’t know what we were building was a monster. The pressure was coming from different directions, people confusing us, disturbing us every day with different media stories that it will never work, it will never work, it will never work.”

This year alone, the billionaire’s net worth grew by $12.7 billion.

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Dangote Reflects on Textile Sector Failures: Billionaire Lost Billions Before Achieving Success

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Aliko Dangote - Investors King

Behind every great success story lies an often-overlooked tale of struggle, missteps, and lessons learned.

Africa’s richest man, Aliko Dangote, recently shared his untold journey of failure and financial loss during a keynote speech at the 2024 Manufacturers Association of Nigeria (MAN) summit in Abuja.

According to Independent.ng, Dangote opened up about a chapter in his career that saw billions of naira lost in Nigeria’s once-thriving textile industry—a venture that, despite his best efforts, ended in closure and significant setbacks.

Dangote, the Chairman of Dangote Group and a global business icon, revealed that his foray into the textile industry in the 1960s did not go as planned.

Reflecting on the experience, he explained how his company, Dangote General Textile Mills, invested billions in two textile mills—one in Kano and the other being Nigeria Textile Mill, an enterprise originally set up for the Western Region by political leader Chief Obafemi Awolowo.

At a time when the Nigerian textile industry was booming, Dangote had high hopes for the success of these mills.

“We massively invested billions at that time,” Dangote said, recalling the scale of the operations. His company had bought out the foreign shareholders of the Nigeria Textile Mill, aiming to capitalize on the growth of the industry.

However, the boom didn’t last, and the lack of supportive government policies spelled doom for Dangote’s textile ventures.

Dangote explained that the government’s failure to protect the sector through consistent and effective policy decisions ultimately led to the collapse of both textile plants.

“We had to shut both the two factories,” he said, attributing the downfall to a combination of unfavorable conditions and a government that was unable to shield the industry from economic pressures.

The situation worsened when it came to paying the pensions and gratuities of employees who had been with the textile mills for decades.

Dangote noted that many of the workers had been employed for 25 to 30 years, creating a massive financial burden for the company.

Facing these enormous costs, he was forced to sell Liberty Merchant Bank, another one of his business ventures, to cover the debt. “Luckily for us, somebody came and said he wanted to buy our bank, Liberty Merchant Bank,” Dangote explained.

The sale of Liberty Merchant Bank brought in N1.2 billion, but this financial relief was short-lived. “After cashing out N1.2 billion, the industry consumed N985 million to pay pensions and gratuities just to get out of the business,” Dangote revealed.

The losses from the textile industry were devastating, leaving him to admit that his company had “burnt its fingers” in the process.

Despite encouragement from former President Olusegun Obasanjo to re-enter the textile industry years later, Dangote declined, citing the trauma of his previous experiences.

“I told him, ‘No, I will not go back there,’” Dangote said.

The billionaire’s candid recounting of these struggles serves as a reminder that even the most successful entrepreneurs face setbacks on their journey to success.

His willingness to share these hardships offers valuable insights for other aspiring business leaders, especially in emerging markets like Nigeria, where industries can be unpredictable, and policy shifts often complicate growth efforts.

Though the textile industry didn’t yield the results Dangote had hoped for, his resilience and ability to learn from failure allowed him to shift focus to other sectors.

Today, the Dangote Group is a leading conglomerate with investments spanning cement, sugar, salt, and petroleum, among others.

Dangote has solidified his place as one of Africa’s wealthiest men, a testament to his determination to succeed in adversity.

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Masayoshi Son Loses $2.6 Billion as SoftBank Shares Sink on BOJ Rate Hike

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Masayoshi Son

Masayoshi Son, the founder of SoftBank Group Corp., saw his fortune decrease by $2.6 billion in just two days as shares of his technology conglomerate plummeted.

The significant drop comes in the wake of an unexpected interest rate hike by the Bank of Japan (BOJ), which has sent shockwaves through the Japanese stock market.

SoftBank Shares Plunge

On Friday, SoftBank shares fell by 8% in Tokyo trading, capping a two-day decline of approximately 14%. This sharp drop in value has erased a substantial portion of the gains Son had accrued earlier in the year.

Despite this setback, Son’s net worth remains approximately $14 billion, still up from the $11.3 billion he started with at the beginning of the year, according to the Bloomberg Billionaires Index.

Impact of BOJ’s Policy Shift

The BOJ’s decision to raise interest rates sooner than anticipated has had a profound effect on Japanese stocks, particularly those in the technology sector. SoftBank, one of the world’s largest tech investors, has been significantly impacted.

The company had enjoyed a 46% increase in its stock price through the end of July, driven by its holdings in companies like chipmaker Arm Holdings Plc.

However, Arm’s shares dropped by 16% on Thursday after the company reaffirmed its annual sales forecast, disappointing investors who had hoped for more optimistic projections.

Economic and Market Repercussions

The broader Japanese market also suffered, experiencing its most significant drop since 2016. Investors reacted to the tighter monetary policy with a selloff, leading to widespread declines across various sectors.

SoftBank’s extensive international operations make it particularly vulnerable to currency fluctuations.

The yen strengthened to a four-month high on Thursday, following the BOJ’s hawkish stance, which added to the pressure on SoftBank’s stock.

Masayoshi Son’s Financial Position

Masayoshi Son, 66, remains the largest shareholder of SoftBank, which is valued at approximately $78 billion.

However, much of his stake is pledged as collateral for loans with various financial institutions. This arrangement heightens the financial risks for Son, especially during periods of market volatility.

SoftBank’s Performance and Future Prospects

SoftBank has been a major player in the technology investment space, with significant stakes in companies that are at the forefront of innovation, such as those involved in artificial intelligence.

The company’s future performance is likely to be closely watched by investors, particularly in light of the recent market turbulence and the BOJ’s policy changes.

Broader Economic Context

The BOJ’s interest rate hike is part of a broader effort to address economic challenges, including inflation and currency stabilization.

The impact of this policy shift on Japanese businesses and the global economy remains to be fully seen.

Analysts and investors are closely monitoring developments, particularly as they relate to major corporations like SoftBank.

The recent decline in SoftBank’s stock price and the resulting loss in Masayoshi Son’s wealth underscore the volatility and uncertainty in today’s financial markets.

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