After losing their luster, the FTX exchange’s and its founder Sam Bankman-Fried’s worth came to an end this week. Nearly 94% of this value was lost by SBF in less than three days, and FTX is on the verge of bankruptcy.
SBF, a former “crypto genius,” had a $14.5 billion decline in his net worth on Wednesday when Binance decided not to buy his exchange. On Thursday, FTT token lost 50% of its value, dropping from $25 to $2.05 this week. As if all of these negative news stories weren’t enough, the Bloomberg Wealth Index reported that the value of FTX may only be $1.
The Bloomberg Wealth Index report makes the “assumption” that SBF and the current FTX investors would soon lose everything due to Binance’s bailout. Bloomberg values FTX, a business that was previously valued at $32 billion, at $1.
According to Bloomberg’s most recent assessment, the $1 price for the FTX exchange is justified by:
The Bloomberg wealth index makes the assumption that the bailout by Binance will totally wipe out current FTX investors, including Bankman-Fried, and that Alameda was the cause of the exchange’s issues.
“As a result, both FTX and Alameda are given a $1 value,” they continued.
SBF’s net worth now stands at roughly $1 billion, down from $15.6 billion on Tuesday. The 94% loss represents the largest one-day fall in billionaires Bloomberg has ever tracked.
Read more about how the FTX cryptocurrency exchange was valued at $1 according to the Bloomberg Wealth Index here.
In 2022, a string of terrible and startling occurrences shook the cryptocurrency community. Investors became uneasy when TerraUST and Luna’s prices dropped to zero in May. Several cryptocurrency lending companies, including Three Arrows Capital and Voyager Digital, went bankrupt as a result of the slump.
In addition, a few exchanges had already stopped accepting withdrawals, and Celsius Network and Babel Finance both declared bankruptcy.
The list of bankrupt crypto companies in 2022 has most recently been updated with FTX. A few crypto exchanges and loan companies have been completely destroyed by the bear markets, which have been brutal and savage. Only time will tell how many more people the bear markets will claim as victims in 2023 and beyond.
