Guellord MbusaFrom one year to the next, the number of crypto-millionaires continues to grow. It has become so common today that the exception remains among crypto-billionaires. While there were only 4 of them two years ago, today there are 19 of them entering the very restricted club of crypto-billionaires.
And despite the high volatility that Bitcoin (BTC) and many other cryptocurrencies are experiencing, the new asset class is making it possible to create real fortunes. For many, we are at an equivalent of the early days of the "Gold Rush".
According to the very recent Forbes ranking, the crypto ecosystem now has 2668 users to exceed the symbolic figure of $1 in personal wealth. But what is driving this rise of millionaires in the ecosystem? Who are they and how did they become rich?
Cryptocurrencies as a lever for new wealth for crypto-millionaires
The democratization of the crypto industry has reached the next level. As a result, the adoption of the cryptocurrency market is increasing. Due to its wealth potential, more people are investing colossal sums in it, thus leading to the rise of crypto millionaires et crypto-billionaires.
If there are so many crypto-billionaires today, it is also because the cryptocurrency market is exploding in several respects. The number of users, the price of tokens, the investment amounts and the number of projects created. All of this combined then forms a supreme market for the creation of new wealth. Additionally, the market is still young, which allows entrepreneurs to be able to create businesses with huge market share. Competition is low enough to create high-growth companies.
Better yet, the cryptocurrency market has no borders. Starting a business today means starting a global business almost immediately. It is since the advent of startups that we have experienced such brilliance, with Facebook notably. With cryptocurrencies, the gap is even smaller. Creating a crypto company today necessarily involves customers from all over the world, and therefore, multiplied revenues.
Another reason explains why there are so many crypto-billionaires today: that of the absence of regulation and the escape from crypto taxes. Many companies escape taxes through numerous means: obtaining a second passport foreigner, domiciliation in tax havens come Dubai, etc. This clearly contributes to the increase in personal wealth…
The cryptocurrency market is growing every day. There are therefore many opportunities for crypto investors. Players (individuals, companies, investment funds, etc.) on the market who own a large quantity of the same asset, after having invested for a long time, often called “Whales” can also grow their assets and become crypto billionaires.
The difference between crypto millionaires and crypto billionaires
Before knowing how many of them make up the club of the richest in cryptocurrencies, it is useful to first define the two terms. A crypto millionaire ou crypto billionaire is a player in the crypto ecosystem who may have gained wealth by investing directly in cryptocurrencies or crypto-related companies.
The big difference between crypto millionaires and crypto billionaires lies in the size of the market. For example, a crypto-millionaire could have become one by creating a profitable company in a given market. A crypto-billionaire usually owns an international company, with millions of customers.
The crypto market is relatively young, there is also less competition. The market is still "young" and it was "easier" then to create well-known companies. The further we go in time, the more difficult it will be to create a company that will experience such dazzling success.
The number of big fortunes in cryptocurrencies is evolving as quickly as the adoption of crypto assets. According to the latest ranking of the world's richest people from Forbes, the crypto industry counts 2 crypto-millionaires. Alongside them is a small, very select circle of crypto-billionaires. In 2020 there were only 4, then 12 in 2021 and today they are now 19 billionaires (in dollars) thanks to cryptocurrencies.
Who are these 19 crypto-billionaires?
Of these 19 crypto billionaires, almost all of them derived their wealth from Bitcoin investments or their own blockchain-related companies. For example, you will find Alex Atallah et Devin Finzer byOpenSea, Chris Larsen et Jed McCaleb de Ripple et Brian armstrong de Coinbase. Vitalik Buterin, creator of Ethereum could be the twentieth crypto billionaire. However, its wealth fluctuates continuously to be structurally included.
The American economic magazine, Forbes, now counts a total of 19 billionaires from the world of cryptocurrencies in the list of the world's big fortunes.
Here are the 19 entrepreneurs who became extremely rich thanks to crypto-assets.
- Changpeng Zhao (aka CZ, the founder of Binance)
- Sam Bankman Fried
- Brian armstrong
- Garry Wang
- Chris Larsen
- Cameron Winklevoss (The twins known in the Facebook affair and today, at the head of Gemini).
- Tyler Winklevos
- Song Chi-hyung
- Barry Silbert
- Jed McCaleb
- Nikil Viswanathan
- Joseph Lau
- Devin Finzer
- Alex Atallah
- Fred Ehrsam
- Kim Hyoung-nyon
- Michael Saylor (early Bitcoiner,
- Matthew Roszak
- Tim Draper
Following the publication of this list, two names captured the attention of the community.
The two leading figures in the ranking
These books are Changpeng Zhao says “CZ” et Sam Bankman Fried, without surprise. They are the most publicized to the extent that their wealth was created in a dazzling manner. It took no less than 4 years to become a billionaire. Which is very little in terms of a life, you will admit.
Changpeng Zhao, founder and CEO of Binance is at the top of the list of crypto-billionaires. According to Forbes, Zhao has a fortune of $65 billion. Thanks to the colossal success of his cryptocurrency exchange platform, he has established himself as the richest individual in the industry. According to Forbes, “CZ” is also the 19th richest person in the world.
As for Sam Bankman Fried , second in the list, is CEO of FTX Exchange and the youngest crypto-billionaire. Indeed, the owner of FTX Exchange has a fortune of more than $22 billion. The speed at which Sam grows his money not only earned him the title of youngest crypto billionaire, but he also became the fastest billionaire.
This title was previously held by Mark Zuckerberg, the owner of Meta. Of course, Sam Bankman Fried he himself also has the ETH tokens and other necessary altcoins, making its assets worth much more.
Although Forbes has established that there are only 19 crypto billionaires, time will tell if Satoshi Nakamoto et Vitalik Buterin are also part of this group of wealthy crypto investors. Because if the creator of Bitcoin happens to be a single person, then, of course, he also belongs to the list of crypto-billionaires because of the number of bitcoin(BTC) he owns.
What do these crypto-billionaires have in common?
Most of these crypto billionaires are entrepreneurs. In fiat, this is close to the adage that says that "during the gold rush, it is not the gold diggers who got rich but rather the sellers of pickaxes." The perfect example is given with the founder of the Levi's brand who sold pickaxes before selling jeans for the miners ofor.
Crypto-billionaires are therefore most of the time those who have created services linked to cryptocurrencies rather than investors.
In the world of finance, a whale is an actor who owns a significant amount of an asset. Among the bitcoin (BTC) whales we can count Satoshi Nakamoto who owns more than a million BTC. With a total of 1 BTC, he is the largest holder of Bitcoin. He is followed by the founders of Grayscale et Binance, who together have roughly the same amount of BTC as Satoshi Nakamoto. These companies have over 600 BTC and 000 BTC respectively, numbers that most Bitcoin investors can only dream of.
Behind these top three Bitcoin holders are cryptocurrency exchanges Bitfinex et OK, both of whom hold over 200 BTC.
Then with microstrategy et Block.one, there are two other parties who own more than 100 BTC. Below the magic limit of 000 BTC are many anonymous wallets, but also well-known personalities like the brothers Winklevoss.
What is the Buy Wall or Sell Wall effect?
With huge amounts of bitcoin (BTC), Bitcoin whales can create a buy or sell wall effect. Indeed, a buy or sell wall effect is a large buy or sell order that causes a strong variation in price.
This is why we often fear whales and the possibility of market manipulation. With a sell wall, there is a good chance that the price will fall sharply, while the opposite can happen with a buy wall. In the second case, however, we witness an increase in the price of a cryptocurrency when one or more players buy huge quantities of it.
In conclusion, the year-over-year surge in crypto millionaires and crypto billionaires is a consequence of the high adoption of cryptocurrencies. People who have invested in projects such as bitcoin (BTC), ETH, etc. as soon as they enter the stock market have recorded enormous capital gains. This is the case of certain personalities like Erik Finman, for example, became a millionaire at 18.
Thus, many crypto-millionaires are those who have invested in very recent projects which have met with great success. However, you still need to have a certain amount of capital to invest in cryptocurrencies if one wants to become that rich. Otherwise, the best option as we have just seen, is to create your own business. Without selling you a dream, the crypto industry is growing day by day and there is certainly a place for you.
Maybe it's time for you too to board the rocket, heading to lunnnnnnneeeee 😉
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Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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