đš Insane Sad Story: How Zhao Tong Lost 100,000 $BTC đš
At 16, Zhao bought BTC for $10 and built the first crypto margin exchange. Hereâs how he lost 100,000 BTC, worth $6 billion today:
đŽ Early Fascination: Zhao discovered Bitcoin and was captivated by its potential for nearly free global money transfers.
đŽ Early Investments: Buying Bitcoin in 2011 was challenging, especially with Mt. Gox facing hacks and a flash crash that briefly dropped BTC price to $0.01.
đŽ Creating Bitcoinica: In just four days, Zhao created Bitcoinica, allowing margin trading. It quickly soared to $40 million a month in trading volume.
đŽ Rapid Success: Zhao made $10,000 (about 2,000 BTC) in the first two weeks, despite concerns about his age and experience.
đŽ Liquidity Growth: Bitcoinicaâs liquidity grew, but Zhao sold the company by late 2011 to focus on school.
đŽ New Ownership: Wendon Group took over, investing heavily and paying $1 million for the Bitcoin.com domain.
đŽ Disaster Strikes: In March 2012, Bitcoinica was hacked twice, losing over 91,000 BTC.
đŽ Fallout: Blame games ensued among Zhao, Wendon Group, and Amir. Users just wanted their BTC back.
đŽ Final Act: Zhao invested 1,000 BTC in a rare solid gold Casascius coin, now valued at over $60 million, and then left the Bitcoin scene.
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