From 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 a new level. As a result, cryptocurrency market adoption is increasing. Due to its wealth-generating potential, more and more people are investing colossal sums, leading to the rise of crypto-millionaires and 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.
Even better, the cryptocurrency market knows no borders. Starting a business today is like starting a global company almost instantly. We've only seen such rapid growth since the rise of startups, with Facebook being a prime example. With cryptocurrencies, the gap is even smaller. Creating a crypto company today inevitably means customers all over the world, and therefore, multiplied revenue.
Another reason why there are so many crypto billionaires today is the lack of regulation and the evasion of crypto taxes. Many companies avoid taxes through various means: obtaining a second foreign passport , establishing their registered office in tax havens like Dubai , etc. This clearly contributes to the growth of personal wealth.
The cryptocurrency market is growing every day. This creates numerous opportunities for crypto investors. Market participants (individuals, companies, investment funds, etc.) who hold significant amounts of the same asset, often referred to as " whales " after long-term investment, can also grow their holdings and become crypto billionaires.
The difference between crypto millionaires and crypto billionaires
Before determining how many of them make up the club of the wealthiest cryptocurrency holders, it's helpful to first define the two terms. A crypto millionaire or crypto billionaire is a player in the crypto ecosystem who may have amassed wealth by investing directly in cryptocurrencies or in companies related to cryptography.
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 cryptocurrency millionaires is growing as rapidly as the adoption of crypto assets. According to Forbes' latest ranking of the world's richest people, the crypto industry boasts 2,668 crypto millionaires . Alongside them is a small, highly exclusive circle of crypto billionaires. In 2020, there were only 4, then 12 in 2021, and today there are 19 billionaires (in dollars) thanks to cryptocurrencies.
Who are these 19 crypto-billionaires?
Of these 19 crypto billionaires, almost all derived their wealth from Bitcoin investments or their own blockchain-related companies. Examples include Alex Atallah and Devin Finzer of OpenSea , Chris Larsen and Jed McCaleb of Ripple , and Brian Armstrong of Coinbase . Vitalik Buterin , the creator of Ethereum, could be the twentieth crypto billionaire. However, his wealth fluctuates so much that it is not structurally included in this category.
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 are Changpeng Zhao, known as “ CZ,” and Sam Bankman-Fried , unsurprisingly. They are the most publicized because their wealth was amassed so quickly. It took them no less than four years to become billionaires. Which is very little in the grand scheme of things, you'll agree.
Changpeng Zhao , founder and CEO of Binance , tops the list of crypto billionaires. According to Forbes, Zhao has a net worth of $65 billion. Thanks to the colossal success of his cryptocurrency exchange platform, he has established himself as the wealthiest individual in the industry. Forbes also ranks "CZ" as the 19th richest person in the world.
As for Sam Bankman-Fried , second on the list, he is the CEO of FTX Exchange and the youngest crypto billionaire. Indeed, the owner of FTX Exchange has a fortune of over $22 billion. The speed at which Sam has grown his wealth has not only earned him the title of youngest crypto billionaire, but he has also become the fastest billionaire.
This title was previously held by Mark Zuckerberg , the owner of MetaTrader. Of course, Sam Bankman-Fried himself also owns the necessary ETH tokens and other altcoins, making his assets worth considerably more.
Although Forbes has established that there are only 19 crypto billionaires, only time will tell if Satoshi Nakamoto and Vitalik Buterin are also among this group of wealthy crypto investors. Because if it turns out that the creator of Bitcoin is a single person, then, of course, they also belong on the list of crypto billionaires due to the number of bitcoins (BTC) they own.
What do these crypto-billionaires have in common?
Most of these crypto-billionaires are entrepreneurs. In a way, this is similar to the saying that "during the gold rush, it wasn't the gold diggers who got rich, but rather the pickaxe sellers." The perfect example is the founder of Levi's, who sold pickaxes to gold miners before selling jeans.
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 someone who owns a significant amount of an asset. Among Bitcoin (BTC) whales is Satoshi Nakamoto, who owns over one million BTC. With a total of 1,100,000 BTC , he is the largest Bitcoin holder. He is followed by the founders of Grayscale and Binance , who together hold roughly the same amount of BTC as Satoshi Nakamoto. These companies have over 600,000 BTC and 400,000 BTC respectively—figures that most Bitcoin investors can only dream of.
Behind these three main Bitcoin holders are the cryptocurrency exchanges Bitfinex and OKX , which both hold more than 200,000 BTC.
Next, with MicroStrategy and Block.one , there are two other parties that hold more than 100,000 BTC. Below the magic threshold of 100,000 BTC are numerous anonymous wallets, but also well-known figures like the Winklevoss twins.
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 whales and the possibility of market manipulation are often feared. With a sell wall, there's a high probability that the price will fall sharply, while the opposite can happen with a buy wall. In the latter case, however, we see a price increase for a cryptocurrency when one or more players buy huge quantities of it.
In conclusion, the year-on-year surge in crypto millionaires and crypto billionaires is a consequence of the widespread adoption of cryptocurrencies. Those who invested in projects like Bitcoin (BTC), Ethereum (ETH), etc., from their initial public offerings have reaped enormous capital gains. This is the case for figures like Erik Finman , for example, who became a millionaire at 18.
Many crypto millionaires have invested in very recent and successful projects. However, you still need a certain amount of capital to invest in cryptocurrencies if you want to become that wealthy. Otherwise, as we've just seen, the best option is to start your own business. Without trying to oversell you, the crypto industry is growing every day, and there's certainly a place for you.
Maybe it's time for you too to board the rocket, heading to lunnnnnnneeeee 😉
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- The 10 richest people in cryptocurrencies according to Forbes
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Note: No financial advice is given in this article or any other article on ZoneBitcoin . This information is entirely your own judgment. Be responsible for your investments and only invest an amount you are prepared to lose.
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