Bloomberg

Crypto Slide, Gaming Slowdown Wipe Billions Off Tycoon’s Fortune

(Bloomberg) — Kim Jung-ju, the billionaire behind Nexon Co., is having a turbulent month.Shares of the Tokyo-listed gaming company have plunged 21% since it forecast a decline in profit on May 12, suggesting its strong performance when the pandemic kept people indoors won’t be sustained as some countries reopen.That’s erased about $1.9 billion from the South Korean entrepreneur’s net worth, reducing his fortune to $8.1 billion, according to the Bloomberg Billionaires Index.On top of that, Kim’s diversification away from gaming into areas including cryptocurrency is facing obstacles. Bitcoin has dropped almost 38% since it rose to a record in April, a stark example of the swings in the prices of virtual coins that have left some mainstream investors skeptical.Kim, 53, has been an avid supporter of digital currencies, and has been acquiring cryptocurrency exchanges in recent years. Nexon also bought $100 million worth of Bitcoin last month.“It was bound to come down,” Matthew Kanterman, an analyst with Bloomberg Intelligence, said of Nexon’s earnings forecast. “Last year was a high base and they are not going to replicate that,” he said. On Bitcoin, “corporations don’t like buying stuff with too much volatility,” he said, suggesting Nexon is unlikely to add to its purchase for now.Crypto InvestmentsEven before Nexon bought Bitcoin, Kim’s holding
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