CEOs Suffer Significant Losses As A Result Of The Crypto Crash

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The impact of the cryptocurrency market crash will be difficult to quantify for some time.

According to data firm CoinGecko, digital-currency prices have fallen from their November highs, wiping out nearly $2.4 trillion.

Bitcoin, the most popular cryptocurrency, has lost nearly three-quarters of its value (73%) since reaching a high of $69,077.44 on November 10. Similarly, ether, the second most valuable cryptocurrency by market capitalization, is down 74% from its all-time high of $4,878.26.

This disaster has claimed a large number of lives: Many retail investors have lost a significant portion of their savings. Prominent crypto firms around the world have declared bankruptcy, while major business names have booked hundreds of millions of dollars in impairment charges.

Departure Wave

Thousands of jobs have been lost or frozen in the sector. The crypto space, which has demanded clear regulation, is now on the authorities’ radar. They interpret the cryptocurrency crash as a sign that the young industry is threatening the stability of the traditional financial system.

“According to FBI statistics, reported monetary losses from digital asset scams were nearly 600% higher in 2021 than the previous year,” the Biden administration stated in its recently released first-ever comprehensive framework to regulate the crypto industry.

The CEOs and founders, who are frequently the same in the cryptocurrency industry, are another group of victims of the crypto crisis, although they have received little attention.

After the creation of bitcoin in 2009, a number of significant crypto players were established. They frequently share a background in technology and were among the first to join the bitcoin trend.

The original CEOs have ceased acting in that capacity since the summer.

The co-founder of the bitcoin trading platform Kraken, Jesse Powell, is the most recent to relinquish control of the business. Powell will take over as chairman, and Dave Ripley, a current employee, and chief operations officer, will succeed him.

According to a statement from Kraken, “We are appreciative of Jesse’s leadership, as well as his dedication to crypto ideals and Kraken’s purpose over the last 11 years.” “As we enter our second decade of growth and international acceptance, we are happy to have Dave as our new CEO.”

The platform went on to say that a new chapter in its brief history was beginning:

“Kraken has changed over the last 11 years from being a bitcoin exchange to a comprehensive crypto platform. Our offerings include a wide range of trading tools and educational materials, staking services that are unmatched in the market, futures trading, and an OTC desk. The Kraken nonfungible-tokens marketplace will shortly go live.”

The Saylor Group And Others

Before Powell, one of the most well-known proponents of bitcoin, millionaire Michael Saylor, resigned from his position as CEO of the software firm MicroStrategy (MSTR) in early August.

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Saylor, who co-founded the company in 1989, takes on the role of chairman and will concentrate more on bitcoin, whose declining values led MicroStrategy to declare a $2 billion impairment charge in the second quarter.

Sam Trabucco, the co-CEO of Alameda Research, and Michael Moro, the CEO of the cryptocurrency brokerage Genesis, both announced their resignations as part of the ongoing CEO changes.

Small investors are also becoming critical of the CEOs of cryptocurrency companies. Among them are Stephen Ehrlich, CEO of the defunct trading platform Voyager Digital, and Alex Mashinsky, founder and CEO of the defunct cryptocurrency lender Celsius Network.

Due to their exposure to the cryptocurrency hedge fund Three Arrows Capital, or 3AC, which was pushed into liquidation after suffering massive losses in the May crash of sibling cryptocurrencies Luna and UST, Celsius and Voyager filed for Chapter 11 bankruptcy.

A lawsuit brought in August by investors who lost money due to Voyager Digital’s bankruptcy named Ehrlich as a defendant. These investors assert that he persuaded them to invest in the dubious Voyager platform, together with multimillionaire Mark Cuban.

Mashinsky has received a lot of criticism in cryptocurrency communities on social media sites like Reddit.

Disclaimer:- Investing in bitcoin and different preliminary coin choices is extremely dangerous and speculative. Because every particular person’s scenario is exclusive, a certified skilled ought to at all times be consulted earlier than making any monetary choices. The Crypto Kingdom makes no representations or warranties as to the accuracy or timeliness of the knowledge contained herein.

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