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According to Bill Ackman, billionaire and CEO of Pershing Square Capital Management, while crypto tokens are used by unethical promoters to perpetuate fraud, they “can enable the creation of useful businesses.” A former critic of digital assets, Ackman insists that “crypto is here to stay” and that society will benefit even more when properly regulated.

Crypto a “Powerful Lever to Access a Global Manpower to Advance a Project”

US billionaire hedge fund manager Bill Ackman says – after studying some crypto projects – that he now believes “cryptography can enable the formation of useful companies and technologies that could not be created before” . According to the billionaire, the ability to issue and use crypto tokens “to incentivize participants in a business is a powerful lever for accessing a global workforce to drive a project forward.”

Still, Ackman insisted in a Nov. 20 Twitter feed that crypto, much like the telephone and internet before it, can be a useful tool to facilitate fraud. To back up this argument, he pointed out how “unethical promoters can create tokens simply to facilitate pump-and-dump patterns.” According to the billionaire’s calculations, “the vast majority of cryptocurrencies are used for fraudulent purposes rather than to create legitimate businesses”.

Despite pointing out what he sees as flaws in crypto, Ackman, who is the founder and CEO of Pershing Square Capital Management, uses two projects – Helium and DIMO – to explain why he changed his mind. . He said:

Helium has created a global Wi-Fi network used by Limebike and others to track devices globally as well as for other uses that benefit from access to global Wi-Fi networks. Helium’s global network of 974,000 hotspots was created by a host of individuals who purchased and deployed Helium hotspots to mine HNT, its native token.

According to Ackman, customers who want to use the network are forced to buy HNT “and burn it”. The demand for HNT tokens is ultimately tied to network demand, Ackman added.

Regarding DIMO, a decentralized data-driven ecosystem that seeks to connect car owners with manufacturers, the billionaire said he also envisions a “two-sided market for DIMO tokens growing over time, where data users buy and burn tokens minted by car owners”. with DIMO data collection devices.

Investing in Crypto as a Hobby

Meanwhile, the billionaire further acknowledged in the Twitter feed that he was an investor in DIMO. He added that his overall investments in crypto-related projects were less than 2% of his assets. Warning his more than 500,000 subscribers, Ackman said:

I invest more as an amateur trying to learn than a cautious investor because I minimize the time I spend on investments other than Pershing Square so don’t rely on my due diligence and take no of the above as an investment recommendation.

Ackman, who has previously asserted that crypto tokens like bitcoin have no intrinsic value, ended the thread by stating that “crypto is here to stay” and has the potential to be most beneficial when is properly regulated.

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.














Image credits: Shutterstock, Pixabay, Wiki Commons, T. Schneider / Shutterstock.com

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