Miami nightclub owners are struggling with slumping sales after losing top-spend
Papi_Chulo
Miami, FL (or the nearest big-booty club)
Monday, November 28, 2022 12:32 AM
Miami nightclub owners are struggling with slumping sales after losing top-spending crypto clientele in wake of FTX implosion and crypto downfall, report says
* Miami club owners told the Financial Times business is slumping as the crypto industry takes a blow.
* Crypto, tech, and hedge fund leaders came to the city en masse during the pandemic.
* But in the wake of the FTX implosion, some of the city's top spenders have vanished.
Crypto leaders aren't the only ones feeling the blow of the cratering market and the downfall of FTX — so too are the Miami club owners who profited from regularly hosting some of the industry's top spenders.
Requests for $50,000 tables and bottle service for top-shelf liquor at the city's hottest venues are drying up, according to a new report from the Financial Times. The scene has become so bleak that Andrea Vimercati, director of food and beverage at Moxy Hotel group, told the outlet that high-rolling crypto regulars have "completely disappeared."
Miami became a hotbed for crypto enthusiasts, tech execs, and hedge fund managers early in the pandemic, prompting a mass exodus to the Florida city. Many said it had potential to rival Silicon Valley, but as the crypto industry takes a blow, the future of Miami as a major tech and finance hub remains uncertain.
Vimercati told the FT that until recently, many clubs had grown used to serving a new demographic of "95 percent men, young ... with a kind of nerdy style," in reference to the swelling crypto scene.
"Out of the blue, all these kids from crypto started coming down and spending a lot of money — like, an insane amount of money," he said.
Now, with the downfall of companies like FTX, club owners and promoters aren't quite certain if big spenders will return, as the value of cryptocurrencies take a nosedive and major players like Sam Bankman-Fried hemorrhage vast amounts of their net worth.
Though FTX was based in the Bahamas — where Bankman-Fried and his close-knit group of friends, lovers, and business associates lived together — the company also had a large presence in Miami. According to the FT, FTX paid $135 million to secure 19 years worth of naming rights to FTX Arena, home to the Miami Heat.
Gino LoPinto, operating partner at the club E11even, told the FT that the company has only brought in $10,000 in the past three months, after raking in more than $6 million last year — much of which came from crypto clients.
LoPinto told the outlet the club began accepting cryptocurrency in 2021, and once hosted an unnamed company that celebrated its sale at the venue with a 50 Cent performance and "bathtubs of champagne" to the tune of $1 million — all paid in crypto.
"You wouldn't normally show your bank account, but people do show their crypto wallets," he said. "I've seen more crypto wallets in a year than I've seen bank accounts in a lifetime."
https://finance.yahoo.com/news/miami-nig…
* Miami club owners told the Financial Times business is slumping as the crypto industry takes a blow.
* Crypto, tech, and hedge fund leaders came to the city en masse during the pandemic.
* But in the wake of the FTX implosion, some of the city's top spenders have vanished.
Crypto leaders aren't the only ones feeling the blow of the cratering market and the downfall of FTX — so too are the Miami club owners who profited from regularly hosting some of the industry's top spenders.
Requests for $50,000 tables and bottle service for top-shelf liquor at the city's hottest venues are drying up, according to a new report from the Financial Times. The scene has become so bleak that Andrea Vimercati, director of food and beverage at Moxy Hotel group, told the outlet that high-rolling crypto regulars have "completely disappeared."
Miami became a hotbed for crypto enthusiasts, tech execs, and hedge fund managers early in the pandemic, prompting a mass exodus to the Florida city. Many said it had potential to rival Silicon Valley, but as the crypto industry takes a blow, the future of Miami as a major tech and finance hub remains uncertain.
Vimercati told the FT that until recently, many clubs had grown used to serving a new demographic of "95 percent men, young ... with a kind of nerdy style," in reference to the swelling crypto scene.
"Out of the blue, all these kids from crypto started coming down and spending a lot of money — like, an insane amount of money," he said.
Now, with the downfall of companies like FTX, club owners and promoters aren't quite certain if big spenders will return, as the value of cryptocurrencies take a nosedive and major players like Sam Bankman-Fried hemorrhage vast amounts of their net worth.
Though FTX was based in the Bahamas — where Bankman-Fried and his close-knit group of friends, lovers, and business associates lived together — the company also had a large presence in Miami. According to the FT, FTX paid $135 million to secure 19 years worth of naming rights to FTX Arena, home to the Miami Heat.
Gino LoPinto, operating partner at the club E11even, told the FT that the company has only brought in $10,000 in the past three months, after raking in more than $6 million last year — much of which came from crypto clients.
LoPinto told the outlet the club began accepting cryptocurrency in 2021, and once hosted an unnamed company that celebrated its sale at the venue with a 50 Cent performance and "bathtubs of champagne" to the tune of $1 million — all paid in crypto.
"You wouldn't normally show your bank account, but people do show their crypto wallets," he said. "I've seen more crypto wallets in a year than I've seen bank accounts in a lifetime."
https://finance.yahoo.com/news/miami-nig…
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15 comments
In the 1980s all the Coke money dried up in Miami.
In the 2020s all the Bitcoin money dried up in Miami.
Who would have thought Columbian drug dealers and nerds would have something in common?
Prices need to come down.
Cryptocurrency lender BlockFi filed for bankruptcy on Monday as a liquidity crisis continues to upend the nascent digital asset sector.
Despite measures taken to protect the company from fallout related to defunct cryptocurrency exchange FTX, which was expected to acquire BlockFi, executives announced efforts to “consummate a comprehensive restructuring transaction that maximizes value” for stakeholders.
“From inception, BlockFi has worked to positively shape the cryptocurrency industry and advance the sector,” Berkeley Research Group Managing Director Mark Renzi, a financial adviser to the company, said in a press release. “BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders.”
BlockFi, which presently has $256.9 million on hand, has frozen the use of its platform. The company listed an outstanding $275 million loan to FTX.US in a bankruptcy filing, according to a report from CNBC. The company “expects that recoveries from FTX will be delayed” as fallout in the cryptocurrency sector continues.
The House Financial Services Committee is preparing to hold hearings regarding the collapse of FTX, which is based in the Bahamas, as the Justice Department and the Securities and Exchange Commission continue their own investigations. Regulators are renewing calls for enhanced federal oversight of the industry.
Earlier this year, cryptocurrency companies Voyager and Celsius declared bankruptcy. Lawmakers recently increased their skepticism of SoFi, a company which operates both a bank holding company and a cryptocurrency exchange, while other cryptocurrency firms such as Genesis have indicated the looming possibility of bankruptcy. Genesis is owned by Digital Currency Group, which also holds investments in popular exchange platform Coinbase and several dozen other cryptocurrency ventures, according to a report from Axios. Genesis ceased withdrawals and new loan activity last week.
https://www.dailywire.com/news/crypto-co…