CZ Loses $12 bn on Crypto-Trading Slump
Sam Bankman-Fried, who is on trial in New York for fraud, isn’t the only crypto founder facing charges.
The Bloomberg Billionaires Index reduced its estimate of Binance’s revenues by 38% after data showed that the firm’s volumes have declined this year. This depleted the fortune of Binance’s founder, Changpeng Zhao, also known as CZ, to $17.2 billion.
CZ, 46, was involved in the events that led to Bankman-Fried’s arrest in federal court. Following a report that Bankman-Fried’s hedge fund Alameda Research also had a large position in it, the Binance founder announced in November that he was liquidating a token linked to FTX.
Some FTX customers rushed to withdraw funds, and the exchange was unable to keep up with the surge. It declared bankruptcy less than a week later.
Binance’s revenue is calculated using spot and derivatives trading data from crypto-tracking services Coingecko and Coinpaprika.
Binance increased its market share earlier this year, reaching 62% of total on-exchange crypto trades in the first quarter as a result of a zero-fee promotion for popular trading pairs. According to research firm CCData, after the offer expired, Binance’s share dropped to 51% at the end of the third quarter.
(With inputs from Shikha Singh)
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