Venture capitalist Kevin O’Leary is doubling down on the crypto markets despite his involvement in the collapse of FTX, of which he was a paid sponsor.
In a new interview with Kitco, O’Leary reveals his current strategy for accumulating Bitcoin (BTC), and gives his perspective on the evolution of regulation in the crypto industry.
“I have been back in the crypto markets lately. Every time Bitcoin drops below $17,000, I add to our positions there. Crypto is getting very interesting as we are finally starting to see the bearer of regulation come into play and I think in the long run that is a good thing.
Those senate hearings really pushed the bears as I like to say. I participated in the last hearings and when I had the chance to speak to the people on the Hill…I felt that they were frustrated now. They’re tired of holding these hearings every six months, every time one of these crypto companies blows up and goes down to zero.
They’re so unregulated, these unregulated exchanges are just… They’re all going to suck. And what will eventually come out of this is a regulated crypto market which I think will be very interesting because there is real merit… Crypto itself is not the bad guy. Crypto is just software code. It’s not the software code, it’s all these rogue players and unregulated exchanges and the issuing of all these worthless tokens, the tokens on the exchanges. All that bullshit… It’s all gonna go away.
O’Leary says he has a particular problem with crypto exchanges issuing their own tokens, and says the practice is shrouded in a lack of transparency.
“We don’t even need to mention which exchange, but all major unregulated global exchanges are incentivizing account holders and users to purchase their tokens for trading fee discounts. 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 actually owns these things, 97% of them belong to the issuer, and you don’t know who that person is because it’s just a wallet with no name on it, and the other 3% values it at 60, 70, 80, 90, 100 billion dollars.
If there’s a cash rush, a cash call to fiat, to US dollars on $100 billion, you know the exchange is going to fail, and that’s exactly what happened to FTX… »
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Feature image: Shutterstock/jovan vitanovski/Andy Chipus