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Thursday, November 30, 2023

Binance Founder CZ Loses $12 Billion on Crypto-Trading Slump

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The Bloomberg Billionaires Index slashed its estimate of revenues at crypto exchange Binance by 38% after data showed volumes at the firm declined this year.

That wiped $11.9 billion from the fortune of Binance’s founder, Changpeng Zhao, known as CZ, dropping him to $17.2 billion.

CZ, 46, played a role in the events that landed Bankman-Fried in federal court. In November, the Binance founder announced he was liquidating a token linked to FTX following a report that Bankman-Fried’s hedge fund Alameda Research also owned a large position in it.

Some FTX customers rushed to pull money and the exchange was unable to keep up with the surge in withdrawals. Less than a week later it declared bankruptcy.

That sent Bankman-Fried’s own fortune to zero after peaking at $26 billion in March last year.

The Index calculates Binance’s revenue using spot and derivatives trading data from crypto-tracking services Coingecko and Coinpaprika.

Binance gained market share earlier this year, peaking at 62% of total on-exchange crypto trades in the first quarter, thanks to a zero-fee promotion for popular trading pairs. Once the offer ended, Binance’s share slid to 51% at the end of the third quarter, according to research firm CCData.

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