The recent collapse in cryptocurrency prices has been a genuine catastrophe for some investors. Among them are the Winklevoss twins, who have lost their billionaire status. In a matter of days they reportedly saw nearly $800 million evaporate from their holdings.
Famous brothers in the United States
Cameron and Tyler Winklevoss are well-known figures in the cryptocurrency world. Just last month, amid a sharp rally, they briefly became the first Bitcoin billionaires. The 36-year-old twins are not newcomers: they competed for the United States rowing team at the Beijing Olympic Games. More broadly known for their early history with Facebook, they sued Mark Zuckerberg, claiming he had taken their idea. After a lengthy legal battle they received a settlement that included $20 million in cash and 1.2 million shares in the company. With those proceeds they invested in Bitcoin, aiming to demonstrate it was a strong long-term idea. For a time, that bet made them billionaires.
A severe decline for the twins
Unfortunately, in recent days cryptocurrency prices have dropped sharply. Each twin is said to have lost approximately $443 million, totaling around $786 million combined. Their virtual net worth fell about 37% over the course of a month. The market slump erased a large portion of the value that had elevated their holdings into billionaire territory. They have expressed hope that the downturn is temporary, although there is no official confirmation whether they have sold any of their crypto positions. In an interview with Bloomberg last month, the Winklevoss brothers reiterated their long-term commitment to the bet: “We think Bitcoin can compete with gold. We think this is just the beginning. But we are going to hold on.”
A considered investment
The Winklevoss twins surprised many when they became the first Bitcoin billionaires. As they explained to The New York Times, their investment was risky but deliberate:
“People don’t want to take it seriously. But at some point that will change to ‘virtual currencies are here to stay.’ […] It has been four years and we are still waiting for proof that this is not a viable alternative to fiat currencies. We could be completely wrong, but we are curious to see how far this will go.”
So far their wager has paid off at times. They remain believers in Bitcoin: the twins even launched a cryptocurrency exchange for Bitcoin and Ether. They have argued that funds stored on their exchange can be as secure as money kept in a traditional bank.
Have they held onto their positions and continued to bet on Bitcoin’s future? Time will tell.