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Crypto billionaires’ fortunes are wiped out as seven richest lose $114 BILLION in seven months 

A video of the Winklevoss twins singing Journey’s hit “Don’t Stop Believin” has gone viral as the siblings lose billions of dollars in a cryptocurrency market crash and were forced to lay off as many as 10 percent of the workforce. fire their startup.

The video, posted to Twitter on Thursday by user Arch Nem, shows Tyler out-chanting the hit song at a club in Asbury Park, New Jersey, while Cameron played an electric guitar.

Both twins wore their hair slicked back during the concert, which Arch Nem described as ‘by far one of the weirdest and most tragically hilarious/irritating things I’ve ever seen.’

The leg of their national New Jersey tour came just a week after the 40-year-old twins laid off 10 percent of the workforce at their cryptocurrency startup, Gemini, citing issues related to “current macroeconomic and geopolitical turmoil.” ‘.

“Today is a tough day, but one that will make Gemini better in the long run,” the brothers told employees in a message on June 2. New York Post

“Constraint is the mother of innovation and hard times are a compelling feature of focus, which is critical to the success of any startup.”

From that moment on, Bloomberg reports, their fortunes have fallen to $3 billion each, from a high of $5.9 billion, as the cryptocurrency market continues to plummet amid fears of an impending recession.

On Monday, Bitcoin – the world’s largest cryptocurrency token – hit its lowest level since December 2020 to trade below $23,000, down from a record high of nearly $69,000 in November. And on Tuesday, it was trading at $22,130.40.

As a result, the Winklevoss twins and five other billionaires who made their wealth using cryptocurrency have lost a combined $114 billion and trading platforms have had to lay off much of their staff.

A video of the Winklevoss twins performing

A video of the Winklevoss twins performing “Don’t Stop Believin” just a week after laying off 10 percent of their staff at a cryptocurrency startup has gone viral on social media

Tyler Winklevoss sang 'Don't Stop Believin' off-key at a venue in Asbury Park, New Jersey on Thursday

His twin brother, Cameron, played electric guitar

The video shows Tyler, left, and Cameron, right, performing a fake rendition of the song Thursday in Asbury Park, New Jersey, as the 40-year-old twins lose billions of dollars amid a cryptocurrency market crash.

On Tuesday, Bitcoin - the world's largest cryptocurrency - traded at $22,130.40 - hitting its lowest level since December 2020

On Tuesday, Bitcoin – the world’s largest cryptocurrency – traded at $22,130.40 – hitting its lowest level since December 2020

The cryptocurrency market continued to plummet Monday amid fears of an impending recession as federal banks around the world consider raising their interest rates

The cryptocurrency market continued to plummet Monday amid fears of an impending recession as federal banks around the world consider raising their interest rates

Crypto markets have plunged in recent weeks as rising interest rates and rising inflation hurt riskier assets in financial markets. The collapse of the TerraUSD and Luna tokens in May also shocked the industry.

As of Saturday, nearly $200 million had been lost from the cryptocurrency market, according to CNBCwith major cryptocurrency lending company Celsius Network freezing withdrawals and transfers, citing “extreme” terms.

In a blog post, the company said it had frozen withdrawals, as well as transfers between accounts, “to stabilize liquidity and operations as we take steps to preserve and protect assets.”

“We are taking this action today to put Celsius in a better position to meet its withdrawal obligations over time,” the New Jersey-based company said.

The company’s decision sparked a shift across the cryptocurrency market, with their values ​​falling below $1 trillion on Monday for the first time since January 2021.

In the aftermath, Binance, the world’s largest cryptocurrency exchange, also paused withdrawals for several hours, blamed for “trade stalled” causing a backlog of transactions.

Changpeng Zhao, 44, the founder of Binance, has now seen his personal fortune – once the world’s 11th largest, down 89 percent to $10.2 billion, and Sam Bankman-Fried, the 30-year-old CEO of crypto trading platform FTX, has seen its fortune plummet 66 percent since it peaked at $26 billion, according to Bloomberg.

He had put $16 million into Super PACs in April, making him one of the largest donors to outside groups, and said he expects to give more than $100 million to Democrats in the next presidential election.

Mike Novogratz, 57, saw his net worth fall to $2.1 billion on Monday after attempting to stage a cryptocurrency comeback following the liquidation of his Fortress Investment Group fund in 2015.

And Coinbase Global founders Brian Armstrong, 39, and Fred Ehrsam, 34 — who were once worth $18.1 billion together — have seen their fortunes dwindle to just $2.1 billion each, while their company’s stock — the largest US crypto exchange – fell by 79 percent.

Armstrong announced Tuesday that the company would have to lay off 18 percent of its workforce.

In a memo to employees, he wrote: “Our team has grown very fast (>4x in the last 18 months) and our personnel costs are too high to effectively manage this uncertain market.

“The actions we are taking today will enable us to get through this period with greater confidence, even if it is severely extended,” he continued, finishing with: “Know that we have made these tough decisions to ensure that our future looks bright.’

Changpeng Zhao, 44, the founder of Binance, has seen his personal fortune plummet 89 percent to $10.2 billion

Sam Bankman-Fried, the 30-year-old CEO of crypto trading platform FTX, has seen his fortune plummet 66 percent since it peaked at $26 billion

Changpeng Zhao, 44, the founder of Binance, left, has seen his personal fortune plummet 89 percent to $10.2 billion, while Sam Bankman-Fried, the 30-year-old CEO of crypto trading platform FTX, right, has seen his fortune plummet 66 percent since it peaked at $26 billion

Mike Novogratz, who attempted his comeback in cryptocurrency, saw his net worth fall to $2.1 billion on Monday

Mike Novogratz, who attempted his comeback in cryptocurrency, saw his net worth fall to $2.1 billion on Monday

On Friday, the US Department of Labor announced that inflation reached 8.6 percent in May 2022 - the highest since December 1981.

On Friday, the US Department of Labor announced that inflation reached 8.6 percent in May 2022 – the highest since December 1981.

The tumbling cryptocurrency market comes amid fears of a global recession as major central banks plan to raise interest rates to tame inflation.

On Friday, the U.S. Department of Labor reported that the consumer price index rose 1 percent in May from the previous month, up 8.6 percent in 12 months — a high from its recent peak in March and the highest level since December 1981. .

Federal Reserve officials are now expected to raise interest rates by 75 basis points — ahead of the 50 basis point hike traders had expected.

“What you see in the market is… fear, uncertainty and doubt,” Nirmal Ranga, head of trading and technical analysis for crypto exchange ZebPay, told CNBC’s Street Signs Asia.

“Technically, the markets seem oversold, and there must be a bottom that we’re going to hit in Bitcoin in the coming future.”

Strong interest in crypto lending has sparked concerns from regulators, especially in the United States, who are concerned about investor protections and systemic risks posed by unregulated lending products.

David Gerard, an author and crypto expert, said a lack of regulation has doomed the industry. Anyone who started investing in crypto in the last six months has sold “magic beans” instead.

“You can’t get rich for free. You’d think that was obvious, but people keep hoping there’s a way out and they’re moving forward, but it’s always false hope,” he said. “Some people are doing great, but more people are getting completely wrecked.”

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