Sam Bankman-Fried's Net Worth Fell 93% In 1 Day, Loses Billionaire Status (cryptoslate.com) 37
The Bloomberg Terminal has updated its estimate of FTX CEO Sam Bankman-Fried's net worth on Nov. 8 to $991 million, down from $16 billion the day before. CryptoSlate reports: The reduced estimate that takes away SBF's billionaire status comes as the native token of the FTX exchange, FTT, fell over 83% to a low of just $2.67 from a daily high of $20.47. A large percentage of SBF's wealth is tied to his business activities with both FTX and Alameda Research, meaning a reduction in the price of FTT tokens would directly affect his personal wealth.
The crypto community on Twitter, never to shy away from adding comedy to tragedy, shared memes and anecdotes comparing SBF to Mark Zuckerberg and the fictional Russ Hannemann from the TV show Silicon Valley. Hannemann had a similar experience losing his "3 commas" status, becoming "just" a multimillionaire. In addition, many users commented that SBF's fall from grace outweighs most retail investors' 2022 losses.
The crypto community on Twitter, never to shy away from adding comedy to tragedy, shared memes and anecdotes comparing SBF to Mark Zuckerberg and the fictional Russ Hannemann from the TV show Silicon Valley. Hannemann had a similar experience losing his "3 commas" status, becoming "just" a multimillionaire. In addition, many users commented that SBF's fall from grace outweighs most retail investors' 2022 losses.
Good ~nt~ (Score:2)
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Oblig Nelson or⦠(Score:2)
https://youtu.be/-DT7bX-B1Mg [youtu.be]
Re:Good ~nt~ (Score:4, Funny)
Poor guy, he's not going to be able to afford the doors of a billionaire [youtu.be]
let's make that stock go down! (Score:2)
let's make that stock go down!
$991 million? Cry me a fucking river (Score:5, Insightful)
All I see here is a scammer whose worth is $990,999,999 more than it should be.
Re: (Score:2)
Yes, but at least now he's not allowed in Billionaires Camp and has to "slum" it with the mere millionaires ;-)
https://simpsons.fandom.com/wi... [fandom.com]
I suspect that by the end of next week he won't even be in millionaires camp, and will just be in "quite rich peoples camp" instead, but we'll see...
Gosh... (Score:5, Insightful)
Re: (Score:3)
I assume that it's polite to agree that the 'value' of his pile of internet fantasy money has indeed fallen 93% in a day; rather than considering the possibility that the prior valuation was somewhere between 'deeply flawed' and 'pure cokehead fantasy'?
Exactly. IMHO he is no poorer today than he was last week. This crypto crap is all speculation and fantasy. If its not backed by hard assets like gold, it doesnt truly exist.
Re: Gosh... (Score:2)
So none of the world's currencies exist?
Re: (Score:2)
Fiat currency is worth whatever someone is willing to pay for it. Gold-backed currency is worth whatever someone is willing to pay for gold.
Re: (Score:2)
There is a not-very-serious proposal to mine an asteroid for gold that has been kicking around for ten years. I wonder if it might be time to take it seriously.
Re: (Score:2)
It was worth billions as long as some bigger sucker was willing to buy it. The amusing thing here is not that it fell so much, it's that the CEO was the one left holding the ball.
Incorrect net wealth calculations (Score:5, Insightful)
On any given day, only a fraction of the total market capitalization of stock is traded, and basic laws of supply and demand dictate the price of that stock.
Then Bloomberg takes that stock price, multiplies it by the number of shares a particular person has, then claims that is their net worth.
But for big whales who own more shares than the daily, weekly or monthly market volumes, if they were to actually sell their shares, then they would massively suppress the price as they would increase the supply, and there would likely be no one in the market to take up demand at the current price.
Bankman-Fried was never going to be able to sell all his units of FTX for $16B. Even now, he can't actually sell all his units of FTX for $991 million. These numbers are almost completely fictional, with only the lightest shoestring tie to reality.
Re: (Score:2)
You don't always have to cash out to spend stock. Sometimes you can just barter using stock or trade stock to buy companies.
Re:Incorrect net wealth calculations (Score:5, Insightful)
just barter using stock or trade stock to buy companies.
Even better, use the stock as collateral for a loan.
Selling and bartering are taxable transactions.
Borrowing isn't, and the interest payments are deductible.
Re:Incorrect net wealth calculations (Score:4, Informative)
The margin call would be a doozy.
"Sir that $2 billion in stock you pledged as collateral on your loan is now worth only $140 million. You will need to pledge additional stock worth $1.86 billion to make up the difference...what, you don't have it? Why are you yelling Sell, Mortimer, Sell?"
Re:Incorrect net wealth calculations (Score:4, Informative)
[...] Bloomberg takes that stock price, multiplies it by the number of shares a particular person has, then claims that is their net worth.
But for big whales who own more shares than the daily, weekly or monthly market volumes, if they were to actually sell their shares, then they would massively suppress the price as they would increase the supply, and there would likely be no one in the market to take up demand at the current price.
Yeah, but that is literally how everyone and everything is valued...
Re: (Score:2)
Nothing that's bought and sold in bulk is valued that way. A lot of things are just the opposite. Oil costs 100 USD/barrel, even though you couldn't buy such a small quantity and expect to get that price.
So it seems people are valued at the retail price while goods are valued at the distributor price. Drugs are valued based on how much you buy, unless you are the police--police always value them at the retail price to seem more impressive.
Re: (Score:2)
Nothing that's bought and sold in bulk is valued that way.
Irrelevant hand waving since we're talking about stock values. Literally every publicly traded corporation is valued this way. Literally everyone's stock portfolio is valued this way. You're pretending like it's unusual. It ain't. It is bullshit, but then, the stock market is bullshit in general — it would be more surprising if it weren't bullshit.
Re: (Score:2)
Yeah, but that is literally how everyone and everything is valued...
Oh, I see you have a different literally than I do.
Russ (Score:2)
https://www.youtube.com/watch?... [youtube.com]
vote for a boat (Score:1)
So he lost a lot of money that he never really had anyway. Like Trump fraudulently overstating the value of his real estate in order to access more credit.
Half the fucking economy is based on a sniff of the goddamn breeze. Speculation and artificial inflation. People sitting in cubicles pushing bits around. There's no productivity dividends when you're digging holes for others to fill in again.
It's a global thing, but it's invariably been promoted by the conservative side of politics. And yet we beg for m
Re:vote for a boat (Score:4, Insightful)
it's invariably been promoted by the conservative side of politics.
True in the past, but becoming less so.
As the Republican party becomes more populist, it attracts dumber and dumber voters, and is losing its pro-business wing.
Republicans are falling out of love with America Inc. [economist.com]
Re: vote for a boat (Score:1)
Fuck, Bill; even you can do better than that.
Re: (Score:1)
TDS
Worth (Score:4, Insightful)
Same goes for the stock market, but this is even worse.
It is all pretend "money" anyways (Score:5, Insightful)
Actual money you can spend without crashing its value. This stuff, not so much.
optimal tip-to tip efficiency (Score:1)
..from the middle out.
Is Slashdot a crypto site now? (Score:2)
Well well well, (Score:2)
The Bankman got fried.
Smart, yet dumb (Score:2)
Imagine being smart enough to accumulate billions of dollars yet dumb enough not to diversify