The Coinbase Founder’s Net Worth Has Dropped 84 Percent
Coinbase, the largest US crypto exchange, has also seen its value plummet. Since April 21, Coinbase’s stock has dropped 84 percent, and founder Brian Armstrong’s net worth has dropped to $2.2 billion from $13.7 billion in November.
Brian Armstrong, the creator of Coinbase Global Inc., had a personal worth of $13.7 billion in November and around $8 billion at the end of March.
Bitcoin, the most popular cryptocurrency, and Ether, the second most popular cryptocurrency, have both dropped more than 50% from their highs late last year. Among those who have suffered the greatest losses are the creators of exchanges where traders purchase and sell digital currencies.
Coinbase Global Inc. founder Brian Armstrong had a personal worth of $13.7 billion in November, according to Bloomberg, and nearly $8 billion at the end of March. According to the Bloomberg Billionaires Index, the sum has dropped to $2.2 billion.
Coinbase is the largest cryptocurrency exchange in the United States.
Michael Novogratz, the CEO of crypto merchant bank Galaxy Digital, has seen his fortune fall from $8.5 billion in early November to $2.5 billion now.
Changpeng Zhao, the CEO of Binance, a cryptocurrency exchange, has lost even more money than Armstrong and Novogratz.
Tyler and Cameron Winklevoss, co-founders of rival crypto exchange Gemini, have lost around $2.2 billion this year, or roughly 40% of their worth.
Since the end of March, Sam Bankman-Fried, CEO of crypto exchange FTX, has seen his worth rise by half to $11.3 billion.
Crypto exchanges in the United States look to be in worse shape than their international counterparts. Coinbase’s trading volumes have been progressively declining since the beginning of the year, whereas Binance, which is more internationally focused, witnessed an increase in volume last month. According to the research, Binance’s US-focused company has seen even greater decreases than Coinbase.
Tyler and Cameron Winklevoss, co-founders of rival crypto exchange Gemini, have each lost nearly $2.2 billion this year, or roughly 40% of their worth. Since the end of March, the fortune of Sam Bankman-Fried, CEO of crypto exchange FTX, has dropped by half to around $11.3 billion.
Armstrong isn’t the only billionaire who has lost money on Coinbase. Fred Ehrsam, a co-founder and former Goldman Sachs Group Inc. trader, is now worth $1.1 billion, down more than 60% this year.
According to Coinbase’s 2022 proxy statement, Armstrong owns 16 percent of the company and controls 59.5 percent of the voting stock, while Ehrsam owns 4.5 percent and controls 26 percent of the voting stock.
Coinbase’s bonds have also fallen in value, recently trading at levels comparable to some of the riskiest junk-rated notes.