Binance Boss Loses $14B Overnight In A Bloody Crypto Market Correction
Even though the crypto market has been declining since the beginning of the week, it culminated in a massive decline on January 21, with BTC now trading at a 6-month low of $35.35K.
Crypto Price Correction And Dwindling Wealth For CZ
As widely reported in various media, the price of crypto-related stocks has not been left out in the massive price correction. Each of Coinbase and MicroStrategy stocks has lost about 17%. Aside from these virtual assets and crypto-related shares, those whose main wealth is from crypto are experiencing a significant drop in their wealth. The richest man in finance (CZ) lost nearly $14b within 24 hours.
The majority of CZ’s wealth comes from his crypto-related investments, including being the founder and chief executive of Binance (the biggest crypto exchange platform globally). Spot trading volume on Binance exceeded $26b in the last 24 hours, while trading volumes on derivatives is nearly $104.5b. Both Binance’s spot and derivatives trading volumes are three times more than Okex (the second biggest crypto exchange platform).
Binance’s domination of the crypto market has been hugely profitable for the company and its founder, CZ. Thus, making him the richest man in crypto and the whole finance industry right now. Bloomberg billionaire data estimates CZ’s wealth to be worth $76B as of this writing, which makes him rank among the top 14 wealthiest men globally.
Asides from being the wealthiest Singaporean resident, the Bloomberg data makes him wealthier than Jack Ma, Carlos Slim, Amancio Ortega, and Micheal Dell. Hence, CZ’s net worth dropped significantly as the crypto market correction became more severe. Besides the Binance boss, Dogecoin advocate and FTX exchange CEO also lost a staggering amount of their wealth as the crypto market price correction continued intensely.
Binance constitutes almost the entire portfolio of CZ’s wealth as the exchange isn’t publicly-owned yet. However, the Binance CEO revealed in a September 2021 interview that his team is working on making the exchange a publicly owned company.
Making Binance A Publicly-Traded Company
During the interview, CZ revealed that it is impossible to list the whole Binance group once on any exchange. Instead, it will list its subsidiaries one after the other, starting with the listing of the US subsidiary. Binance’s native token (BNB) is among the top four digital assets globally and forms part of CZ’s wealth.
Even though CZ’s position as the richest man in the finance industry remains unaffected, the man himself isn’t obsessed with his wealth. He once declared that he would give away almost all of his wealth before his death.
BNB Price Action
BNB lost nearly 20% in value over the past 24 hours and about 26% in the last seven days. It trades at $355 as of this writing. The RSI and MACD indicate bearishness.
Analysts concur that the current market correction is more severe than last month. Hence, it is no wonder that there is intense selling pressure on almost all digital assets.