Results of “Red Tuesday” – How Much Crypto Value Have People Lost?
Following what many crypto-collectors are calling “Red Tuesday,” investors are gathering their thoughts (and their sanity) and looking through the rubble to see how much they’ve lost within a 24-hour period. No doubt, the final totals aren’t pretty, but the good news is the market is already showing signs of recovery.
The Big Dogs Ain’t as Big for Now
Recently, Bitsonline reported the newfound wealth of Chris Larsen, co-founder and former CEO of Ripple (XRP). Sources were reporting that Larsen had become the richest person in the world on paper, and while the claims were relatively exaggerated, Larsen did, in fact, have a lot of money to his name.
Ripple had experienced a near price-doubling within the frame of just a few short days, and with billions of XRP stashed away, Larsen’s wealth skyrocketed into the $50 billion USD range.
But Tuesday’s “crypto-outage” saw those holdings acutely gashed. Ripple is trading for around $1.50 at press time, which would place Larsen’s financial holdings at around $22.5 billion. Still a nice number in the long run, but a multi-billion dollar loss probably doesn’t feel too great.
Crypto Billionaires No More?
The Winklevoss twins, officially — if not temporarily — audited as being the first bitcoin billionaires, allegedly lost a large chunk of their holdings’ USD value in the recent crash. Previously, the brothers had a combined net worth of over $1 billion in bitcoins, having purchased nearly $11 million in BTC in 2013 when the coin was hovering at around $120.
San Francisco entrepreneur Grant Hummer explains that losing money on crypto-investments is practically the norm, and it can take some time to get used to the ups and downs one sees so frequently. As the co-founder of a new $100 million hedge fund known as Chromatic Capital, he states:
“My neurons are fried from all the volatility. I don’t even care at this point. I’m numb to it. I’ll lose a million dollars in a day and I’m like, ‘OK.’”
A Light at the End of the Tunnel
Despite the bloodbath, many are looking at the experience as an opportunity of sorts – a time in which the market phases out any false realities, and investors can purchase crypto for lesser prices.
Brian Kelly, for example, serves as the head of BKCM, a digital assets strategy company. He’s confident the market slide isn’t permanent, but it can give those interested in crypto the chance to learn more and plan their investment strategies with careful ease. It’s this careful attitude, he believes, that could potentially bring the market back from the recent strain.
“The regulatory fears have been a big hit to sentiment,” Kelly explains. “But in my view, it’s temporary. There is a handoff taking place from Asian investors who are being prohibited from investing, to U.S. and Japanese investors who are just beginning to discover the asset class.”
Is crypto on the verge of rising again, or will the slump last a while? Post your comments below.
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