Key Takeaways
- CZ’s net worth stands at $17.3 billion, marking an 82% decline from its peak of $96.9 billion
- Binance’s market share experienced a decline, dropping to 51% by the end of the third quarter
Changpeng “CZ” Zhao, the co-founder and CEO of Binance, has experienced a significant reduction in his net worth, losing a staggering $11.9 billion. This substantial drop is directly linked to the declining trading volumes on the Binance exchange.
Earlier this year, Binance had been riding high, achieving an impressive increase in market share that peaked at 62% of total cryptocurrency trades conducted on exchanges in the first quarter. This growth was largely attributed to a zero-fee promotion for popular trading pairs. In January 2023, CZ’s net worth stood at a remarkable $96 billion.
However, following the conclusion of this promotional period, Binance’s market share experienced a decline, dropping to 51% by the end of the third quarter, according to research firm CCData.
Data from Bloomberg revealed that the company’s revenue took a hit, plummeting by 38%, as trading volumes at the exchange dwindled amidst ongoing regulatory challenges.
On October 26, the Bloomberg Billionaires Index revised Binance’s revenue estimates downward by 38%, causing CZ to slide to the 95th position on the rich list. His net worth currently stands at $17.3 billion, marking an 82% decline from its peak of $96.9 billion in January 2022 when he was ranked 11th among the world’s wealthiest individuals.
CZ’s net worth had reached its zenith in early 2022 before taking a parallel trajectory with the crypto market’s performance. Bloomberg’s index calculated Binance’s revenues using data from crypto data aggregators CoinGecko and Coinpaprika, focusing on spot and derivatives trading.
As of September, the exchange’s spot trading market share had witnessed a continuous decrease for seven consecutive months, ultimately reaching 34.3%.
The situation for Binance has been compounded by legal challenges, including a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in June.
The SEC’s suit alleged that Binance had violated U.S. securities laws by failing to register certain crypto products and assets it offered. In response, Binance argued that the SEC’s claims lacked a basis in current securities laws.
