Khaby Lame, who did everything necessary to become a billionaire on paper overnight, has now found himself in a financial storm. The company's stock has fallen after a record deal that the company announced, which had previously sent his net worth skyrocketing, causing investors and fans to wonder: Was it a genius in the making or a scam?
What: $975 Million “AI Revolution”
Last January, Rich Sparkle Holdings, a U.S.-listed company with connections to Hong Kong, announced that it had acquired Step Distinctive Limited, the entity responsible for Khaby Lame’s international branding.
- The Valuation: The deal was valued at around $975 million (nearly ₹8,100 crore).
- The Framework: The deal was structured to sell stock in all shares, so Khaby was compensated with shares instead of cash.
- The “AI Twin”: Part of the deal involves creating an Artificial Intelligence “Digital Twin” of Khaby, enabling on-demand live programming — programs available in multiple languages — without his physical presence.
THE $7.2 billion mystery behind the “₹60,510 Crore” figure
Where did the $7.2 billion (₹60,510 crore) figure come from? Speculative trading quickly followed its announcement, sending Rich Sparkle Holdings’ stock soaring to new heights. Khaby’s “on-paper” net worth reached those astronomical levels only temporarily, as he became a controlling stakeholder of the company with the merger. The former factory worker enjoyed, for the time being, a wealth advantage comparable to the country’s most successful business figures.
The Crash: The reason for the stock decline by 77%
The euphoria was short-lived. Financial analysts cite these three key factors in their reasoning.
- Valuation Skepticism: They argued that a company built on the work of a single creator even one with 160 million followers could not be valued in the multi-billion dollar range.
- “Pump and Dump” Concerns: Regulators began to worry about what is called the “low float” of the stock — a situation where companies list few shares of the stock, making the price vulnerable to hype.
- Limited Disclosure: As a foreign company with fewer obligations to disclose, Rich Sparkle faced panic selling after the initial hype subsided and investors sought solid revenue figures.
Nonetheless, Khaby Lame is not broke despite the stock crash. Now his net worth, after years of high-profit deals with brands such as Hugo Boss and Binance, is more than $80 million (₹670 crore), which can be classified separately from the volatile stock.
His so-called “paper wealth” took a huge hit, but it is still a historic step in the creator economy moving from “pay-per-post” to “institutional ownership”.
Main Idea: Always remember to clearly distinguish between “Market Cap Wealth” (stock value) and “Liquid Wealth” (cash & assets). Amidst the stock crash, Khaby’s brand remains one of the most cherished in the world.
