Embattled billionaire and founder of Binance, Changpeng Zhao’s, net worth has recorded gains of up to $8.42 billion, pushing his total wealth to nearly $50 billion, driving his year-to-date gains up by $13.9 billion.
According to data from the Bloomberg Billionaires Index, Zhao had a net worth of $48.3 billion on Monday, March 25, 2024, up from $39.9 billion as shares in Binance increased from $549.19 per share on March 22, 2024 to $554.30 at that time.
The majority of Zhao’s wealth is made up of his shareholding in Binance, which has become the world’s biggest crypto exchange by trading volume with more than 150 million users as of August 2023.
Binance’s revenue of $9.8 billion is derived from the average of the company’s trailing 12-month spot and derivative trading volumes through March 2024, as monitored by research services Coingecko.com and CCData. In addition, this significant amount of revenue is generated by the average transaction charges listed on Binances.com that are separate from spot or derivative volumes.
The updated revenue figure in March 2024 resulted in a net worth gain of approximately $11 billion for Zhao, reflecting the significant growth trajectory of Binance and its founder’s wealth amid the evolving ecosystem of the cryptocurrency market.
Changpeng Zhao, widely recognized for his influential role in the cryptocurrency industry, is credited with holding a significant 90% ownership stake in Binance, as disclosed in public statements and filings in regions where ownership details are made publicly available.
In addition to his stake in Binance, Zhao also possesses ownership of Binance.US, a related exchange operating in the United States. During a fundraising round in March 2022, Binance.US garnered a valuation of $4.7 billion, with Zhao estimated to own an 86% stake in the company based on its fundraising history.
This remarkable achievement was attributed in part to a zero-fee promotion implemented for popular trading pairs, enticing users to engage in trading activities on the platform.
However, following the conclusion of the promotional period, Binance faced a decline in its market share, which dwindled to 51% by the end of the third quarter, according to data provided by research firm CCData.
The challenges that Binance faces in maintaining its dominant position, is underlined by this decline in market shares, given the evolution of market conditions and legal pressures.
In addition to these challenges, Binance has faced increased regulation and legal action from government authorities as it seeks to compete with the current financial system. The US SEC filed a lawsuit against Binance in June, accusing the company of numerous infringements and lack of regulation.
These regulatory challenges culminated in significant repercussions for Binance, including a substantial $4.3 billion fine imposed by U.S. regulators.
