More than $200 billion erased from entire crypto market in a day as

Thursday, May 12, 2022
author picture Noah Rousseau
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More Than $200 Billion Erased From Crypto Market in a Day

The cryptocurrency market took another large hit over the last 24 hours‚ with More than $200 billion erased from the total market cap. This sell-off is likely the result of several factors‚ including rising inflation‚ war concerns in Ukraine‚ and a decline in major stock market indices. Adding to the pain was the collapse of the stablecoin terraUSD‚ which dropped by 30% earlier this week‚ to 40 cents per coin. The underlying value of the stablecoin should not fluctuate.

Coinbase founder's fortune plummets to $2.2 billion

The fortune of Coinbase founder Brian Armstrong has plummeted over the past few months as the cryptocurrency market has seen a steep decline. In November last year‚ the Coinbase founder's fortune stood at $13.7 billion. By March this year‚ his fortune had fallen to just $2.2 billion. But Armstrong has reassured customers on Twitter that their money is still safe with Coinbase. While Brian Armstrong's fortune has fallen‚ it is not just Armstrong's. Another Coinbase billionaire is Fred Ehrsam‚ a former dealer at Goldman Sachs Group Inc.‚ whose fortune has fallen More than 60 percent this year. Both Armstrong and Ehrsam own at least 16% of Coinbase and control around two-thirds of its voting shares. And despite Coinbase's stock's plunge‚ Armstrong's fortune is still enough to buy the $133 million Bel Air mansion he bought in January. In 2014‚ Wood published the Ethereum Yellow Paper‚ the technical specification of Vitalik Buterin's white paper. He then went on to propose Solidity as the native programming language of Ethereum. According to reports‚ Wood's net worth is about $450 million. And if that's not enough‚ he also co-founded Alchemy. In February‚ Alchemy raised $200 million at a valuation of $10.2 billion. Meanwhile‚ the former child actor has made his way into the cryptocurrency world. He has co-founded Blockchain Capital with two brothers‚ Bradford Stephens and Bart Pierce. His personal net worth is estimated at $1.9 billion. However‚ his fortune has declined as the price of cryptocurrencies has plummeted. Among the other crypto billionaires‚ Changpeng Zhao has lost over eighty percent of his fortune. In addition to Armstrong‚ Sam Bankman-Fried and Cameron and Tyler Winklevoss have also suffered a severe blow. Their fortunes have fallen by nearly 40 percent. They each lost over $2 billion‚ while Michael Novogratz‚ CEO of Galaxy Digital‚ is worth only $2.5 billion. Despite the dramatic decline in his fortune‚ however‚ he continues to be a billionaire despite losing More than half of his fortune.

Ether price falls 4.2%

During the past 24 hours‚ Ethereum's price fell almost four percent and lost More than one-third of its value. This drop has erased More than $200 billion from the entire crypto market and brought the combined value of all cryptocurrencies to a little More than $1 trillion. This loss is likely the result of several factors‚ including increased inflation and concerns about the war in Ukraine. A stablecoin‚ the UST‚ is one such crypto. It is a cryptocurrency that should not lose value‚ but instead retain a constant value. This crisis has impacted crypto-related stocks across Asia‚ with Hong Kong-listed BC Technology Group Ltd. closing down 6.7% and Japan's Monex Group Inc. closing down 10 percent. Although Bitcoin and Ethereum were able to rebound on Friday‚ the loss was More than offset by losses on other cryptocurrencies such as Bitcoin. However‚ the losses were far More significant for stablecoins‚ such as Ether‚ which may have been hit the hardest. The sell-off has spread quickly in the world of cryptocurrencies‚ where investors are weighing the risks of losing money. The S & P 500 futures dipped 0.8% on Thursday‚ trailing the MSCI Asia Pacific Index. The market is flooded with concerns over rising inflation‚ an increasingly hawkish Federal Reserve‚ and consumer spending pullbacks. Even small cryptocurrencies such as Ether have suffered during the latest plunge. The collapse in the TerraUSD coin may indicate a larger spread among the crypto assets. Meanwhile‚ the losses have also hit the fortunes of several cryptocurrency billionaires. Coinbase's shares have dropped by 78 per cent since its IPO in April 2021. Brian Armstrong‚ the company's co-founder‚ took to Twitter to defend the firm. Fortunately‚ his company is not facing any risk of bankruptcy. In other news‚ the CEO of the largest cryptocurrency exchange Binance‚ Changpeng Zhao‚ made his debut on the Bloomberg Wealth Index in January. The company's net worth dropped from US$96 billion to $ 16 billion on Wednesday. Bloomberg's report used the average value of multiple Coinbase and Voyager Digital transactions to calculate the CEO's net worth. The declines in both stocks and the price of Ethereum have slashed the market's total value by over $200 billion.

Bitcoin price falls 9%

A major sell-off of cryptocurrencies has wiped out $200 billion in just one day. The crash was triggered by the collapse of the TerraUSD stablecoin‚ a major cryptocurrency that impacted big tokens particularly hard. Bitcoin plunged nearly 10% and Ethereum fell as much as 16 percent. The crypto markets in Asia are tumbling as well. Hong Kong fintech company BC Technology Group Ltd. and Japan-based TradeStation are both down 10% on the day. Other major cryptocurrencies fell along with Bitcoin‚ with the largest fall coming from Ethereum‚ the native currency of the Ethereum platform. The broader market has shed More than $200 billion in value in a single day‚ erasing nearly half of its value in a single day. Meanwhile‚ the AP reports that Coinbase shares have lost nearly half of their value in a week. The crashing price of bitcoin has led to a sharp decline in sentiment. The Bitcoin Fear and Green Index - a measure of market sentiment based on social media posts‚ volatility‚ and trading volume - has plunged by nearly 12% in just a day. This decline has paralleled a wider decline in the stock market. Russian equities have lost More than $200 billion as a result of the war in Ukraine‚ while India's stock market has been bleeding red. As the crypto market continues to tumble‚ terraUSD and Dogecoin‚ which were created as a joke‚ have been hit hard. Tesla‚ which is still refusing to accept payments in Bitcoin‚ has suspended all Bitcoin payment processing. However‚ this is unlikely to stop Tesla and other companies from accepting it. While China has continued to shut down all cryptocurrency activities‚ Tesla has yet to resume accepting payments in the digital currency.

Dogecoin price falls 97%

Despite the recent plunge in the price of Dogecoin‚ it remains an attractive investment for many. This popular crypto currency has pumped several times in recent years‚ as many investors have traded it against Bitcoin in an effort to accumulate More of the main cryptocurrency. The rise of Dogecoin‚ however‚ has been fueled by speculative talk and a certain amount of humor‚ resulting in good comedy and a few investors making a lot of money. While many cryptocurrency investors have jumped in recent days‚ a few weeks ago‚ the dogecoin price had already started to fall. This was after Elon Musk made some jokes on Saturday Night Live about how he'd buy his mother a dogecoin for Mother's Day. It's difficult to believe that Musk is a fan of this cryptocurrency‚ but he's clearly aware of the volatility of its value. Elon Musk is one of the big supporters of dogecoin. He has said that he has millions of dollars in the cryptocurrency and hopes to use it to buy Tesla. However‚ this move has prompted Twitter to launch a poison pill defense in response to Musk's potential bid for Twitter. This defense is an attempt to deter hostile takeovers. Musk is an advocate of dogecoin and his involvement in the project led to increased acceptance by Tesla. The cryptocurrency was introduced as a parody of cryptocurrencies and Litecoin. While most cryptocurrencies use an encrypted ledger of transactions called a blockchain‚ Dogecoin was conceived as a joke. As such‚ the price of Dogecoin has slashed 97% of its value. This is the first time that the cryptocurrency has been hampered by a hacker‚ but its creators are confident that there will be More to come. Although Dogecoin has declined by almost 90% from its all-time high‚ the currency is still within the top 10 cryptocurrencies on CoinMarketCap. Its market cap is over $10 billion and it is worth at least $100 million. That's More than the market cap of companies such as ASUSTEK Computer Inc. (TPE: 2337) and Zillow Group Inc. (NASDAQ: ZG). Its price may be More speculative than its value.