17 new billionaires: Crypto has made many fortunes in one year
It was known that with the dynamism that has characterized them for several months, cryptocurrencies have lifted many out of financial misery. Forbes magazine, in a recent study, documented these perceptions. Its report shows how in the span of a year, these assets, as prized by some as feared by others, have created new billionaires. As for the old ones, they have seen their financial fortunes related to crypto grow in proportion to their faith in these assets. In this article, we present those who, through risk-taking, have become wealthy thanks to crypto.
First, a bit of crypto context
The crypto market has seen a remarkable resurgence, marking the end of the bear market according to many experts. The hallmark of this resurgence is the flagship crypto, Bitcoin (BTC), which has skyrocketed and more than doubled in value over the past year. March was historic. Bitcoin reached an all-time high of $73,000 driven by investor enthusiasm for the spot Bitcoin ETFs approved in January. More broadly, the crypto industry has been on an upward trend, with a valuation increase of 170%. An increase that represents a value of $1.6 trillion achieved over the past 12 months.
This resurgence has not only impacted the market as a whole. It has literally transformed the financial landscape for individual investors and entrepreneurs. Forbes’ list of the world’s billionaires in 2024 reveals a significant increase in the number of crypto billionaires. While there were only 9 in 2023, there are now 17! And these crypto fortunes weigh heavily. They weigh so much, in fact, that their combined fortune is now estimated at $93 billion, compared to $37 billion in 2023. This figure includes their holdings in various cryptos, their publicly disclosed stock investments, and their private assets.
The increase in the number of crypto billionaires has a profound meaning. It highlights the sustained acceptance of cryptocurrencies in a context of adoption that is increasingly conquering the general public. The dynamic also underscores the legitimacy these assets have gained as a relevant investment for generating wealth beyond helping to preserve it. That said, who are these crypto billionaires who are making headlines?
The new faces of the crypto financial elite
They are named Giancarlo Devasini, Paolo Ardoino, Jean-Louis van der Velde, and Stuart Hoegner. These four investors, now crypto billionaires, are actually the four main investors of Tether, the issuer of the highly controversial USDT stablecoin.
Stuart Hoegner, whose current net crypto fortune is $2.5 billion, has been the general counsel of Tether and its subsidiary Bitfinex since 2014. He holds a 13% stake in the company. After starting a career as a chartered accountant at Ernst & Young, Hoegner founded Gaming Counsel Professional Corporation, a law firm specializing in online gambling with a crypto-focused clientele.
Jean-Louis van der Velde, a former CEO of Tether, now has a fortune of $3.9 billion. He holds a 20% stake in the company where he serves as a strategic liaison to banks and regulators. Originally from the Netherlands, he ventured into information technology and tech startups in Asia before joining Tether.
As for Paolo Ardoino, he has a fortune similar to that of Jean-Louis van der Velde ($3.9 billion). He also holds a 20% stake in Tether as the CEO and public face of the company. His career path led him to work as a computer programmer in various startups.
And Giancarlo Devasini, current Chief Financial Officer of Tether, boasts a crypto fortune valued at $9.2 billion. He is factually the richest of the four Tether investors due to his substantial stake in the company, estimated at 47%. Devasini’s role includes overseeing the profitability of Tether, which notably earned $6.2 billion in interest revenue last year.
The Classic Crypto Billionaires
By classic billionaires, we mean investors who were billionaires before the Forbes ranking. What has changed is the value of their crypto fortunes which have substantially exploded. This list includes Joe Lau, Nikil Viswanathan, Tim Draper, brothers Tyler and Cameron Winklevoss, Matthew Roszak, Jed McCaleb, Fred Ehrsam and Michael Saylor, as well as Fred Ehrsam, Chris Larsen.
It should be noted that the spectacular growth of these billionaires’ fortunes is closely linked to the evolution of the crypto ecosystem and financial technologies.
Thus, the fortunes of Joe Lau and Nikil Viswanathan ($1.5 billion each) are partly due to the growing demand for blockchain solutions in various sectors. Tim Draper, whose fortune has climbed to $2 billion thanks to his investments in Bitcoin, was an early visionary of blockchain technology. The same goes for brothers Tyler and Cameron Winklevoss. With a net worth of $2.7 billion each, their fortunes are also tied to their investments in bitcoin and their crypto exchange platform Gemini.
Jed McCaleb, with a fortune of $2.9 billion, has seen his asset value increase due to his sales of XRP, the native cryptocurrency of Ripple. Matthew Roszak, whose crypto wealth totals $3.1 billion, has benefited from the rise of bitcoin and ether. The same holds for Fred Ehrsam, cofounder of Coinbase, who has seen the value of his holdings soar to $3.2 billion.
Chris Larsen, the cofounder of Ripple, has capitalized on the growth of the Ripple ecosystem to amass a fortune of $3.2 billion. Mike Novogratz has managed to capitalize on the rise of Galaxy Digital Holdings, his investment firm focused on cryptos and blockchain. Moreover, his early and successful investments in bitcoin have also contributed to the significant increase in his wealth. Lastly, Michael Saylor’s fortune rose to $4.4 billion thanks to his investments in MicroStrategy and his massive purchases of bitcoin.
The Dynamic Duo
While all these investors are financially significant in the crypto industry, they are lightweights compared to Brian Armstrong. As the co-founder of Coinbase alongside Fred Ehrsam, the net value of his fortune blew up to $11.2 billion, up from $2.2 billion previously.
Holding an 18% stake in Coinbase, he has witnessed a staggering 50% rise in the company’s stock since the beginning of the year. The stock has more notably tripled since last year, reaching a market capitalization of nearly $60 billion.
Yet, neither Brian Armstrong nor even the others come close to the wealth of Changpeng Zhao (CZ), the former CEO and founder of Binance. His fortune is estimated at $33 billion, a considerable leap from the $10.5 billion he previously owned. Although he has faced federal money laundering accusations, his wealth has not dwindled. He remains a dominant force in crypto, thanks to his 90% stake in Binance.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.