The collapse of FTX has sent shivers through the crypto space, with everyone walking on eggshells fearing possible contagion in the industry. The terror escalated when the struggling crypto exchange filed for Chapter 11 bankruptcy, leading people to doubt the future of the industry.
However, some investors remain optimistic that the crypto will not crash any time soon. Among these bullish investors is billionaire investor Bill Ackman. Despite the ongoing fiasco in the digital ecosystem, Ackman is confident the industry has a bright future. In his words, crypto is here to stay.
Bill Ackman is the CEO and founder of Pershing Square Capital Management, a hedge fund management company. He took to Twitter and shared his perspective, saying digital assets won’t go down no matter the challenges. However, Ackman highlighted the need for increased regulation of digital assets and weeding out fraudulent players from the industry.
Apparent regulatory oversight needed in crypto: Ackman
The billionaire investor recently called for removing regulatory barriers and loosening regulations in New York to make the city a crypto hub. Ackman is a direct investor in many projects. However, after calling for ease of regulations, recent events in crypto might have made him accept the urgency of a clear regulatory path.
In his statement, Ackman said that crypto has the potential to benefit society and improve the global economy. But he said there is a need to remove unscrupulous promoters who create tokens to facilitate pump-and-dump schemes. He added that most digital coins facilitate fraudulent activities instead of creating legitimate businesses.
However, the billionaire believes that extensive regulation and oversight can weed out fraudulent players from the digital asset industry. According to Ackman, all legitimate participants in digital assets should be encouraged to expose and weed out bad actors.
For him, fraudulent activities increase the risk of regulatory intervention, which will hinder the positive impact of digital assets for generations to come.
Crypto has the potential to improve the global economy, Ackman
Bill Ackman shared how he went from crypto skeptic to proponent. He said he was initially skeptical of digital assets, but now believes they can enable businesses and applicable technologies to grow.
He added that the ability to incentivize company participants with tokens is a powerful tool for mobilizing a global workforce to facilitate a project. Ackman ended his statement by saying that sensible regulation and oversight are needed to move digital assets forward.
Meanwhile, reports suggest Ackman initially praised former FTX CEO Sam Bankman-Fried for admitting his mistakes, but deleted the tweet. The hedge fund manager may have changed his stories for fear of criticism amid continued contagion from the FTX crash.
Featured image from Pixabay, chart from TradingView.com