Miami nightclub owners are facing slumping sales and dwindling revenue as the crypto rich turn away from entertainment venues amid the recent collapse of FTX and the broader crypto market downturn.
according to a new report from financial TimesCrypto entrepreneurs who used to spend big in Miami nightclubs by renting out an entire venue for an entire evening have calmed down.
“Out of the blue, all these kids from crypto started coming down and spending a lot of money — like, an insane amount of money,” said Andrea Vimarcati, director of food and beverage at the Moxy Hotel Group. “They were booking tables for $50,000, and it was like, who are these people.”
At the time, crypto prices were near all-time highs. The leading cryptocurrency was trading at around $60,000 while Ethereum was trading near $4,000.
However, after the recent collapse of FTX, once the third largest cryptocurrency exchange in the world, crypto prices went into a free fall. Bitcoin has dropped below $16,000, down 75% from its all-time high of around $70,000.
According to club owners, the Crypto Kids, who were “95 percent male, young . . . with a kind of nerdy style,” “have completely disappeared.”
“They wanted to show they had no limits,” Vimarkati recalled. “They were ordering 12 or 24 bottles of the most expensive champagne and showering themselves without drinking.”
E11even, a famous nightclub in Miami, will reportedly start accepting payments in cryptocurrencies in April 2021. The club processed transactions worth more than $6 million last year, but less than $10,000 in the past three months.
In addition to spending money in nightclubs and entertainment venues, the crypto rich kids also stuffed their money into other parts of Miami’s luxury scene, namely real estate, cards, and even large yachts.
“They bought big houses for over $25 million, they chartered big yachts . . . they had money and they were spending it lavishly,” said Brett Harris, executive director of luxury sales at real estate firm Douglas Elliman Said. “They were buying big houses with cash, no financing – converting bitcoin into cash to buy.”
as informed ofSam Bankman-Fried, former CEO and founder of collapsed crypto exchange FTX, recently revealed that he currently has around $100,000 in his bank account. His wealth reached an all-time high of $26.5 billion last year.
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