Post-Election Surge in Cryptocurrency Wealth
Following the recent US election, leading figures in the cryptocurrency world have experienced a significant boost to their wealth, according to a report by Coindesk.
Brian Armstrong’s Financial Gains
CEOs like Coinbase’s Brian Armstrong and Ripple’s Brad Garlinghouse saw major financial gains after the election results. Armstrong, for instance, earned an additional $129 million from stock sales, with Coinbase’s market value surging by $21 billion. His stake in Coinbase increased by nearly $2 billion, bringing its total value to $6.4 billion.
Political Contributions and Diversification Strategy
Coinbase made a notable political contribution by donating $74 million to various political action committees (PACs) to support the election. Armstrong’s stock sales were part of his diversification strategy to ensure continued control over his company.
Brad Garlinghouse’s Dramatic Gains
Ripple’s Brad Garlinghouse witnessed even more dramatic gains after the value of XRP, the company’s native token, surged from $0.50 to $2.32 post-election. This led to a 54.7% increase in its market cap over the past 30 days, placing it in the third position among all digital assets. Garlinghouse, who owns over 6% of Ripple and a significant amount of XRP, has seen his wealth increase by over three times since the election.
Increased Valuation and Personal Wealth
Garlinghouse mentioned to Coindesk, “The crypto market is up over $1 trillion since Trump won — that’s the price of Gensler’s foot on the neck of the market, and he’s not even officially gone yet.” The election likely boosted the value of Ripple Labs, increasing the value of Garlinghouse’s stake and causing his personal wealth to soar.
Major Investor Gains
Major investors in crypto firms such as Andreessen Horowitz (A16Z) have also seen significant gains, surpassing their election-related investments. Ripple and A16Z each donated tens of millions to political causes, with Ripple contributing $73 million and A16Z $70 million.