Venture capitalist Kevin O’Leary is doubling down on the crypto markets despite being involved in the collapse of FTX, of which he was a paid backer.
In a new interview with Kitco, O’Leary reveals his current strategy for accumulating Bitcoin (BTC) and offers his perspective on the development of regulation in the cryptocurrency industry.
“I have been coming back to the crypto markets lately. Every time Bitcoin falls below $17,000, I add to our positions there. Crypto is becoming very interesting because we are finally starting to see the regulation carrier come into play and I think in the long run that is a good thing.
These Senate hearings have really pissed off the bears, as I like to say. I participated in the last hearings and when I had the opportunity to speak with the people in Cerro… I felt that now they are frustrated. They are tired of organizing these hearings every six months, every time one of these cryptocurrency companies blows up and goes to zero.
They’re so unregulated, these unregulated exchanges are just… They’ll all go to zero. And what’s going to come out eventually, is a regulated crypto market which I think will be very interesting because it has real merit… Crypto itself is not bad. Crypto is just software code. It’s not the software code, it’s all these rogue players and these unregulated exchanges and the issuance of all these meritless tokens, the tokens on the exchanges. All this crap… It’s all going to go away.”
O’Leary says he has a particular problem with crypto exchanges issuing their own tokens, saying the practice is shrouded in a lack of transparency.
“We don’t even have to mention which exchange, but all of the large unregulated global exchanges incentivize account holders and users to buy their tokens for discounted trading fees. It’s not new, it’s been going on for years. And then they put them on their balance sheet at a ridiculous valuation. And if you look at who owns this stuff, 97% of it is owned by the issuer, and you don’t know who that person is because it’s just a nameless wallet, and the other 3% are valuing it. to $60, $70, $80, $90, $100 billion.
If there’s a cash run, a cash back to fiat, back to US dollars at $100 billion, you know the exchange is going to fail, and that’s exactly what happened to FTX…”
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