Nikonomics - The Economics of Small Business

74 - From Self-Made Billionaire at 35 to Bankruptcy Just 12 Months Later with Zac Prince

Oct 23, 2024

Zac Prince, the founder of BlockFi, a crypto lender that managed $15 billion, shares his incredible journey from becoming a self-made billionaire at 35 to facing bankruptcy just a year later. He discusses the harsh realities of the crypto collapse and the lessons he's learned about equity and volatility. Transitioning to real estate, Zac reveals why he left the crypto space and his new role as CEO at RE Cost Seg, focusing on tax savings for investors. His insights on resilience in high-risk environments are both inspiring and thought-provoking.

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Intro

00:00 • 4min

Navigating Uncertainty: The Job Market of 2009

03:40 • 2min

Navigating Early Career Choices in the Startup World

05:39 • 2min

Lessons From Financial Struggles and Career Decisions

07:21 • 3min

Innovative Advertising: The Rise and Acquisition of a Dynamic Retargeting Company

10:36 • 2min

From Success to Setback: The BlockFi Journey

12:51 • 9min

Navigating Regulations in Crypto and Cannabis

21:29 • 19min

Navigating Real Estate and Business Growth

40:07 • 11min

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Zac Prince (https://x.com/CostSegZac), the founder of BlockFi, who grew the company from zero to $15 billion in client assets in just four years, made $1 billion for himself, lost $1 billion, and ultimately sold the company to Sam Bankman-Fried and FTX. In this episode, Zac shares his story of living through the crypto collapse firsthand, the hard lessons he's learned about equity, and how he deals with extreme volatility.

We also dive into Zac's decision to leave the crypto space entirely, joining Nick Huber as the CEO of RE Cost Seg, a company focused on saving real estate investors money on taxes. If you want to hear how a crypto billionaire faced both triumph and disaster, and his insights into starting over, this is a conversation you won't want to miss.

Questions this Episode Answers:

How did Zac Prince grow BlockFi to manage $15 billion in assets?
What were the biggest lessons Zac learned about equity during his career?
Why did Zac decide to leave the crypto space and join RE Cost Seg?
How does Zac think about volatility and handling high-risk environments?
What are Zac's frameworks for moving forward after losing billions?

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This week we covered:

00:00 Introduction
01:26 Early Life and Entrepreneurial Spirit
03:01 Career Beginnings and First Tech Job
06:04 Lessons in Equity and Financial Growth
13:57 Transition to FinTech and Discovering Crypto
17:09 Founding BlockFi and Rapid Growth
18:56 Challenges and Downfall of BlockFi
24:04 BlockFi's Interest Account Strategy
24:27 Alameda's Exceptional Performance
25:11 The Rise and Fall of FTX
27:52 BlockFi's Bankruptcy and Aftermath
29:17 Life After BlockFi
31:29 Joining RECostSEG
37:24 The Value of Cost Segregation Studies
41:31 Marketing and Growth Strategies
45:00 Reflections and Future Plans
47:22 Rapid Fire Questions and Conclusion