Sam Bankman-Fried is reportedly no longer a billionaire, as the FTX CEO’s net worth plummeted 93% from $16 billion to $991 million, according to the ‘Bloomberg Billionaires Index‘.
The crash in the net worth of one of the most influential crypto executive’s comes after FTT, the native token of the FTX exchange, lost 90% of its value in just two days.
Recent revelations showed that FTX, as well as fellow Bankman-Fried founded crypto trading firm Alameda Research, which is also rumored to be insolvent, hold large amounts of the FTT token on their balance sheets.
In fact, some estimates show that over 90% of the tokens in circulation are being held by the two entities, with some speculating that the firms even use FTT as collateral to take out loans and engage in leverage trading.
As a result, the price of FTT has dropped from its value of higher than $22, recorded just a few days ago, to as low as $2 on Tuesday, November 8th, representing a decline of more than 90%. As the value of FTT plummeted, so did Sam Bankman-Fried’s personal net worth, due to the fact that a significant portion of SBF’s wealth is tied to his business activities with FTX.
Exacerbating the issue, Bankman-Fried also has holdings in bankrupt crypto lender Voyager Digital, BlockFi, and broker Robinhood, the shares of which dropped 20% on Tuesday.
It’s unclear whether Binance intend to go forward with the rumored acquisition of FTX. Either way, it’s likely that the insolvent exchange, valued at $32 billion just a few months ago, now has an extremely low acquisition value, which has further impacted Bankman-Fried’s net worth.
Just a few months ago Bankman-Fried was thought to be one of the most influential people in crypto. A multi-billionaire under the age of 30, SBF was actively engaged with regulators in trying to bring regulatory clarity to the crypto industry. The crypto mogul also donated millions of dollars to the Democratic party in the recent midterm elections.
Just a few days ago Sam Bankman-Fried was considered one of the most influential people in the crypto industry, the recent developments in the FTX saga have shown that the wealth of influence of even the most highly regarded personalities in the space can change in the blink of an eye.
Find out more about the Alameda FTX drama:
The Untold Story of the Alameda-FTX Crisis That Nearly Brought Down the Crypto Market
See original on DailyCoin
Source: Cryptocurrency - investing.com
