Following the recent trouble facing FTX crypto exchange, the founder Sam Bankman-Fried (SBF) no longer ranks in the top 500 on Bloomberg’s billionaire index.
After a 94% estimated overnight decline in his personal wealth, crypto billionaire Sam Bankman-Fried (SBF) may no longer be allowed to call himself a “billionaire,” according to the Bloomberg Billionaires Index.
When he was at his wealthiest, Bankman-Fried ranked highly on Bloomberg’s wealth index, with a rumored net worth of $26 billion. The crypto entrepreneur, however, is no longer listed among the top 500.
His personal riches are “likely” to be “eviscerated,” according to the outlet’s Nov. 9 story, should the sale of his FTX exchange to rival Binance go through.
Bankman-Fried owned a 53% share in FTX and its value before the news of Binance’s acquisition was about $6.2 billion. In order to increase his own wealth by an additional $7.4 billion, he continued to hold Alameda Research.
The two companies are valued at just $1 by the Bloomberg wealth index, which estimates that Bankman-Fried and current investors will lose everything as a result of the Binance acquisition.
As a result, Bankman-value Fried’s has decreased from $15.6 billion on November 8 to approximately $1 billion, marking the “largest one-day loss among billionaires tracked by Bloomberg.”
The takeover’s specifics are yet unknown, but it excludes FTX.US, the exchange’s American subsidiary. Earlier this year, the American-only exchange’s value was estimated at about $8 billion.
According to Bankman-Fried, the current arrangement between the exchanges is merely an informal letter of intent that Binance is free to “get out of at any point.”
Zhao highlighted his “two important lessons” from the most recent cryptocurrency fiasco on November 8. The first was never using a token that the exchange had created as collateral. Second, cryptocurrency enterprises should maintain a sizable reserve rather than borrow money or use it “efficiently.”
The exchange’s native token, FTX Token (FTT), which is at the center of the most recent crypto pandemic, has dropped a staggering 75% during the last 12 hours. At the time of writing, the defunct FTT token was trading at $4.86, down 94% from its peak of $84.18 reached in September 2021.
