<\/p>\n
Changpeng Zhao<\/span><\/a>, widely known as CZ and the founder of Binance, one of the largest cryptocurrency exchanges, has suffered a significant blow to his fortune. According to a recent Bloomberg <\/span>report<\/span><\/a>, CZ\u2019s wealth plummeted by $12 billion due to the ongoing slump in crypto-trading activities.\u00a0<\/span><\/p>\n Per the report, this decline was primarily attributed to a sharp drop in <\/span>trading volumes<\/span><\/a> at Binance throughout the year.<\/span><\/p>\n The Bloomberg Billionaires Index revised its revenue estimates for Binance, slashing it by 38% after data revealed a decline in <\/span>trading volumes at the exchange<\/span><\/a>. As a result, CZ\u2019s net worth now stands at $17.2 billion, marking a significant reduction from his previous valuation.<\/span><\/p>\n According to Bloomberg, CZ\u2019s involvement in recent events that led to the <\/span>bankruptcy filing of FTX<\/span><\/a> further impacted his financial situation. In November, CZ announced the liquidation of a token linked to FTX (FTT) after reports emerged that Alameda Research, the hedge fund owned by <\/span>Sam Bankman-Fried<\/span><\/a>, the founder of FTX, held a large position in it.\u00a0<\/span><\/p>\n The announcement triggered a rush among FTX customers to withdraw funds, overwhelming the exchange\u2019s infrastructure. As a consequence, FTX <\/span>declared bankruptcy<\/span><\/a> within a week, erasing Bankman-Fried\u2019s fortune, which had peaked at $26 billion in March the previous year.<\/span><\/p>\n To estimate Binance\u2019s revenue, the Bloomberg Billionaires Index relies on spot and derivatives trading data from crypto-tracking services Coingecko and Coinpaprika.\u00a0<\/span><\/p>\n Binance had witnessed a significant gain in<\/span> market share <\/span><\/a>earlier this year, reaching 62% of total on-exchange crypto trades during the first quarter. However, after a promotional zero-fee period for popular trading pairs ended, Binance\u2019s market share slid to 51% by the end of the third quarter, as reported by research firm CCData.<\/span><\/p>\n Binance has also faced increasing regulatory scrutiny, isolating itself from the traditional financial system. The Securities and Exchange Commission (SEC) <\/span>filed a lawsuit<\/span><\/a> against Binance in June, accusing the exchange of violating regulations.\u00a0<\/span><\/p>\n Earlier this year, the Commodity Futures Trading Commission (CFTC) also <\/span>took legal action<\/span><\/a> against Binance for non-compliance with rules that allowed US users to access the platform.\u00a0<\/span><\/p>\n Allegations against Binance include <\/span>inadequate money-laundering controls<\/span><\/a>, inflated trading volumes, and mishandling of client assets. Binance has strongly disputed these claims and is currently contesting them in court.\u00a0<\/span><\/p>\n In June, Bloomberg\u2019s wealth index reduced the value of Binance\u2019s US exchange to zero after it announced the discontinuation of dollar transactions, resulting in a significant decline in trading volumes.\u00a0<\/span><\/p>\n Binance.US had previously been valued at $4.7 billion during a funding round in March 2022, while CZ\u2019s net worth peaked at $96 billion in January.<\/span><\/p>\n The challenges faced by Binance are not unique, as regulatory uncertainties and rising interest rates have made alternative investments more appealing. <\/span>Coinbase Global<\/span><\/a>, another leading cryptocurrency exchange, experienced a 52% decline in spot trading volume in the third quarter compared to the previous year, according to Bloomberg.\u00a0<\/span><\/p>\n Despite the personal wealth challenges CZ faces, Binance Coin (BNB) has capitalized on the overall market recovery, showcasing substantial gains across various time frames. Currently, the token is trading at $225.2, maintaining its upward trend with a 2.2% increase over the past 24 hours.<\/span><\/p>\n Furthermore, BNB has demonstrated significant gains of 5.8%, 9.6%, and 6.1% over the seven, fourteen, and thirty-day time frames, respectively. These positive trends highlight the token\u2019s strong performance in recent weeks.<\/span><\/p>\n Featured image from Binance, chart from TradingView.com\u00a0<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Changpeng Zhao, widely known as CZ and the founder of Binance, one of the largest cryptocurrency exchanges, has suffered a significant blow to his fortune. According to a recent Bloomberg report, CZ\u2019s wealth plummeted by $12 billion due to the ongoing slump in crypto-trading activities.\u00a0 Per the report, this decline was primarily attributed to a […]<\/p>\n","protected":false},"author":2,"featured_media":182577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-182576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=182576"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182576\/revisions"}],"predecessor-version":[{"id":182578,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182576\/revisions\/182578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/182577"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=182576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=182576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=182576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}CZ\u2019s Financial Losses<\/span><\/h2>\n
Binance Value Plunges As Lawsuits And Allegations Take A Toll<\/span><\/h2>\n