Economic Insider

Ethereum Takes a Deep Dive Following the Crypto Market Crash, Stripping Co-Founder Vitalik Buterin of His Billionaire Status

Crypto market crash leaves Ethereum co-founder stripped of billionaire status

Photo: Financial Express

By now, the world is no stranger to crashes in either the crypto or stock market. Still, the recent crypto crash created a significant impact that left millions with heavy losses, including billionaires. Although a downturn was expected, the crypto crash last month due to selloffs in Terra UST and sister token Luna’s collapse tore a hole in the pockets of many, like Ethereum co-founder Vitalik Buterin.

Vitalik Buterin is known for his role in co-creating Ethereum in 2014, which quickly gained momentum in the crypto space. It has established itself as a community-run technology that powers Ether or ETH, home to digital money, global payments, and applications. Often used in purchasing Non-Fungible Tokens or NFTs, Ethereum became the second-largest cryptocurrency in the market behind Bitcoin.

On November 16, 2021, Ethereum hit an all-time high of $4,891.70, giving Buterin holdings worth $1.5 billion. In the six months that followed, the cryptocurrency made a steeper correction. Last Sunday, Ether traded $2,015, currently up to 2.4%, with a market cap of $243.5 billion, making up 15% of the crypto market.

Crypto market crash

Following the crypto market crash, Vitalik Buterin announced on Twitter that he was no longer a billionaire. However, he was not alone as other billionaires in cryptocurrency announced the loss they suffered.

Today, Ether is down by more than 32.4%, and in the last seven days, it plunged by over 3%. In a month, its fall was over 33%. Compared to its all-time high in November last year, Ether took a nosedive by nearly 59%. In a year, the downside is the tune of over 12%.

Changpeng Zhao, or CZ, the founder of Binance, tweeted that he was poor again. He also revealed that Binance received 15 million LUNA tokens for its investment of $3 million into the Terra network. Although it reached a $1.6 billion investment in stable coins, CZ did not sell any when it crashed to zero limits.

Michael Novogratz, the founder of crypto merchant bank Galaxy Inc, also wrote a letter to shareholders, friends, partners, and the crypto community, acknowledging that Terra UST and LUNA “was a big idea that failed.”

Opinions expressed by Economic Insider contributors are their own.

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