Almost entire fortune vanished into thin air: crypto billionaire loses 15 billion in one day

Discussion in 'Wall St. News' started by TrAndy2022, Nov 9, 2022.

  1. TrAndy2022

    TrAndy2022

    Almost entire fortune vanished into thin air: crypto billionaire loses 15 billion in one day
    Schmidt Martin (smt)-6 hours ago

    upload_2022-11-9_17-36-54.png
    Sam Bankman-Fried had set himself up in the summer to the savior of the crypto industry. Now the company of the US billionaire itself had to be saved.

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    Crypto billionaire loses 15 billion in one day© Bloomberg via Getty Images


    30-year-old Sam Bankman-Fried has been one of the stars in the crypto sky for years. But the multi-billionaire's soaring fortune came to an abrupt end on Tuesday. His fortune practically vanished into thin air in a single day. Bankman-Fried has lost around $15 billion with its crypto exchange FTX, according to estimates by the Bloomberg Billionaires Index. The index maintains a daily updated ranking of the richest people in the world.

    FTX, the fourth largest crypto exchange in the world, has massive liquidity problems. Declining investor confidence has exacerbated the problems in recent days.

    "All assets are covered 1 to 1"
    They have withdrawn their money from the platform and brought it to safety. This plunged FTX and its founder and CEO Sam Bankman-Fried deeper and deeper into misery – and sent the entire crypto industry into a tailspin on Tuesday. The most important cryptocurrency Bitcoin alone temporarily fell by more than 17 percent to $17,744 on Tuesday – the lowest level in two years.


    In order for the crypto market to stabilize, FTX finally had to be rescued by the largest crypto exchange Binance. In the process, Bankman-Frieds lost most of his $16 billion fortune. On Tuesday evening, Bankman-Fried tried to reassure investors. "All assets will be covered 1 to 1," he assures on Twitter.


    From rescuer to needy
    Bankman-Frieds founded FTX three and a half years ago. In the summer, the young American had proclaimed himself the savior of the industry and, for example, saved the lender fordigital currencies BlockFi. Bankman-Fried had less success with his rescue attempt at the crypto bank Voyager Digital, which went bankrupt. Now he himself was dependent on help.

    The planned FTX takeover by Binance could not really calm the markets. The Bitocin recovered to 18,313 dollars by Wednesday morning and fell back to 17,724 dollars by 10:50 a.m.

    "The announcement of the spectacular takeover has now initiated new concerns about major turbulence," writes analyst Timo Emden about the events, adding that "the ongoing tensions in the industry obviously do not stop at larger addresses." This makes investors "extremely allergic".


    Takeover could still fail
    Things are not quite as pessimistic at the online bank Swissquote. Analyst Ipek Ozkardeskaya believes that the "trouble" with FTX has shaken confidence again and triggered a sector-wide sell-off. However, the "risk of contagion" of the distortions around FTX remains limited. The sector has already been able to overcome previous and similar crises.

    Many observers warn that the takeover could still fail. As quickly as things have developed, it is quite possible that Binance could pull back, according to the market. (smt/SDA)
     
    Nobert and comagnum like this.
  2. TrAndy2022

    TrAndy2022

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  3. maxinger

    maxinger

    When is Tulip Mania #2 coming?
     
    KCalhoun, spy and jys78 like this.
  4. VEGASDESERT

    VEGASDESERT

    i dont follow crypto but im wondering what caused the mass withdrawals?
     
    murray t turtle likes this.
  5. %%
    SAME here;
    sounds like @ least a tulip has small amount of value/ to this day.
    Must not have been much or any bids on that crypto cr*p, so to speak.
    Bull Cr*p is Sold by WMT by the 50 # bag, s0 i was using a figure of speech:D:D
     
  6. tomkat22

    tomkat22

    So I guess MLB umpires wont be wearing the FTX patch on their unis next year? LOL
     
    AKUMATOTENSHI and VEGASDESERT like this.
  7. virtusa

    virtusa

    To me there is a similarity between Russians and crypto diehards: they both use arguments that make no sense and even have lost all contact with reality.
    The Russians use it to explain why they went to war with Ukraine.
    The crypto diehards use it to attract new victims who should pump up the "value" of crypto's.

    Crypto's are a vault of value. ROFLMAO.
    A billionaire worth 16 billion loses everything in less than 24 hours. ROFLMAO.
    I prefer losing some value because of inflation in fiat currencies than losing between 50% and 100% of my money in crypto's.

    Everything that is build on thin air can inflate fast, but can also deflate fast.
     
  8. zdreg

    zdreg

    Does he still have his girlfriend?
     
    #10     Nov 9, 2022