Market crash causes CZ and Cardano founder to lose $3 billion in net worth
Bitcoin’s struggles continued as it traded over 50% below its peak on October 6th, amid another volatile week in the cryptocurrency market. The market as a whole experienced an 8.7% drop in the last day, with major assets like Cardano’s ADA and Binance Coin seeing double-digit losses. ADA fell over 11% to $0.25, while Binance Coin dropped by over 10% to around $623. Red numbers were prevalent on exchanges, leaving many to wonder how industry leaders were dealing with the significant losses suffered.
During a public livestream from Tokyo, Cardano founder Charles Hoskinson disclosed that his personal crypto holdings had seen over $3 billion in paper losses. He clarified that these losses were unrealized and not actual exits, emphasizing that he had no plans to sell despite the substantial decrease in wealth. Hoskinson highlighted the challenges faced by developers and investors in the current market downturn, encouraging them to remain engaged and resilient.
Cardano’s native token ADA performed poorly compared to the broader market during the recent sell-off. With a drop to $0.25, ADA has seen a 92% decline from its all-time high of $3.10 in September 2021. Despite the harsh reality of the current pricing, Hoskinson pointed towards the ongoing developments within the Cardano ecosystem, including progress on scaling, consensus upgrades, and privacy-focused sidechains. He believes that utility and infrastructure will play pivotal roles in shaping the future of the industry.
Reflecting on comments made earlier this year, Hoskinson shared that he had experienced approximately $2.5 billion in paper losses over four years. He attributed these losses to regulatory pressure and political interference, which had deterred retail investors. Looking ahead, he sees 2026 as a reset period rather than a typical bull market, where tangible use cases will hold more significance than mere hype.
Binance founder Changpeng “CZ” Zhao injected some humor into the situation as Bitcoin began its slide towards $60,000. CZ posted a lighthearted message on social media, joking about being “poor again” as Bitcoin’s price dropped. He recalled using a similar phrase during a previous market dip, suggesting that the market had eventually recovered. Despite the dip, Bitcoin rebounded to around $65,100, still reflecting an 8.5% daily loss, and trading well below its peak price of over $126,000. Binance Coin mirrored Bitcoin’s losses, falling to approximately $623, down nearly 55% from its all-time high.
Despite the market turbulence, both Hoskinson and CZ remain optimistic, viewing the current situation as a learning experience and an opportunity for growth. Market cycles spare no one, reminding even the wealthiest figures in the cryptocurrency industry that fortunes can change rapidly in the volatile world of digital assets.
