Nerdy crypto entrepreneurs who spent big in Miami nightclubs, flooding customers with cash as they ordered ‘bathtubs of champagne’ and sang along with rappers like 50 Cent, have gone quiet, owners said of South Florida locations.
The sudden collapse of cryptocurrency exchange FTX and the plummeting value of digital coins has Miami nightclub owners dreaming of the days when young entrepreneurs flocked to places like E11even and its neon lights. , its trapeze dancers and burlesque shows.
“They would order 12 or 24 bottles of the most expensive champagne and shower without even drinking,” Andrea Vimercati, catering manager for Moxy Hotel Group, told the Financial Times. “[The crypto entrepreneurs] wanted to show that they had no limits.
Vimercati recalled that the crypto boom of a year ago prompted a wave of mostly young men awash with cash to flaunt their newfound wealth in Miami.
“Out of the blue all these crypto kids started coming down and spending a lot of money – like an insane amount of money,” he said.
“They were booking tables for $50,000, and it was like, ‘Who the hell are these people?’
Vimercati described the crowd as “95% male, young…with kind of a nerdy style.”
“You couldn’t tell they had a lot of money if they were just walking around,” he said.
Gino LoPinto, operating partner of Miami hotspot E11even, told FT that a group of crypto businessmen entered the club in June last year to celebrate what they claimed was the sale. success of their business.
“50 Cent was performing well and their expenses were over $1 million,” LoPinto told FT. “They paid in crypto.”
LoPinto added, “They brought out tubs of champagne and gave 50 Cent a bunch of cash to throw away.”
In April last year, E11 even started accepting cryptocurrency payments. LoPinto said the club processed $6 million in deals between April and December last year.
In the past three months, however, the club have only collected $10,000.
LoPinto said crypto entrepreneurs would brag about their wealth by showing each other their digital wallets.
“You wouldn’t normally show your bank account, but people show their crypto wallets,” he said.
“I’ve seen more crypto wallets in a year than bank accounts in a lifetime.”
In the year since, crypto partiers don’t call. Instead, they are licking their wounds alongside an entire industry that has been rocked by the implosion of FTX, the exchange founded by the disgraced Sam Bankman-Fried.
FTX filed for Chapter 11 bankruptcy earlier this month after learning that Bankman-Fried was using client funds to place risky bets through sister company Alameda Research.
FTX’s collapse was shocking given that the company, whose celebrity roster included Tom Brady, Gisele Bündchen, Larry David, Steph Curry and others, was at one point worth some $32 billion.
BlockFi, another crypto company that was in talks to be acquired by FTX, filed for Chapter 11 in federal bankruptcy court in New Jersey on Monday.
The news caused the value of the vast majority of cryptocurrencies to fall. As of 11:19 a.m. EST, bitcoin was down nearly 3% while ethereum was down more than 4.8%.
The global market capitalization of all cryptocurrencies in circulation was valued at $814.55 billion on Monday, down 3.5% from the previous day, according to CoinMarketCap.com.
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