Crypto Market Slump Hitting Bitcoin and Altcoin Billionaires Real Hard
Since 2009 when Satoshi Nakamoto created Bitcoin, the price of the world’s flagship blockchain money has been rising and falling. However, in 2017, the price of bitcoin raced to nearly $20,000, boosting the value of some altcoins along the line and ultimately creating a whole lot of new millionaires and billionaires in the process.
However, 2018 has been an entirely different story for the world of cryptos as various circumstances have led to a significant price crash of all virtual currencies on the market, crashing the wealth of many it made super rich some months ago.
Cryptocurrency is for the Big Hearts
Virtual currencies are super volatile assets that’s why experts advise investors to always pump in as much as they can afford to lose. Just like forex and stocks, crypto isn’t for the chicken-hearted as it has the power to create millionaires within the shortest timeframes and can as well drag down investors just like it has been doing since January 2018.
The following are only a few of the crypto big whales who have been hit hardest by the recent digital currency price slump.
The co-founder and chairman of Ripple (XRP), the world’s number three cryptocurrency according to market cap. Chris Larsen topped the Forbes cryptocurrency rich list published in February, with an estimated net worth of $7.5 billion – $8 billion. Fast forward to April 2018, and the bear has eaten up most of Chris Larsen’s crypto wealth, leaving him with only $3 billion.
Even with the recent partnerships, the Ripple team has formed with reputable banks and financial institutions, the team’s achievements have failed to reflect in the price of their native XRP cryptocurrency.
Matt Mellon, another investor who latched on to the ripple spaceship to the moon quite early, amassing up to $1 billion in XRP wealth back in January, has also seen the value of his tokens crash to between $300 to $400 million now.
The chart below shows that Ripple has fallen 86 percent from its all-time high, whereas investors in coins such as bitcoin, binance coin, decred, and monero have only seen their holdings decline by around 40-66 percent since these coins hit their all-time highs.
Cameron and Tyler Winklevoss
The Winklevoss twins, early bitcoin adopters, die-hard hodlers and proud owners of cryptocurrency trading platform, Gemini, as well as venture firm Winklevoss Capital.
The bitcoiners have lost at least one-third of their crypto net-worth within the last two months. The Twins bought their first bitcoin when it was just at $9, and they have always made the world know they won’t sell their BTC even if the price of the world’s flagship crypto falls to ground zero. “We still think it is probably one of the best investments in the world and will be for decades to come. And if it’s not, we’d rather live with disappointment than regret,” Tyler told the New York Times in December 2017.
Why the Dip?
As it stands, all those who joined the crypto bandwagon when the price of bitcoin was on its way to the moon in 2017 have all lost their massive gains. For now, it’s only the early crypto adopters that are still very much in profit.
The recent bloodbath has been mostly due to the regulatory uncertainties that have eclipsed the crypto markets since early 2018. The co-founder and managing partner at Blockchain Capital, Bart Stephens sums up the above fact by saying that:
“If U.S. regulators are cracking down, if exchanges are being pressured by regulators, then liquidity could be materially hampered. The enemy of capital formation is uncertainty. When you don’t know the rules of the road, it’s hard to know whether to drive on the right side, left side, at 15 miles an hour or 50 miles an hour.”
The markets are down right now but definitely not going to zero. The regulatory storm will soon be over, and hodlers will all live happily ever after; this is not the end.