Billionaire Chamath Palihapitiya Issues Crypto Warning, Predicts Industry’s ‘Honeypots’ Will Be Exposed

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Bil­lion­aire ven­ture cap­i­tal­ist Chamath Pal­i­hapi­tiya says a new phase of cleans­ing is com­ing to the cryp­to markets.

In the lat­est All-In pod­cast, the ser­i­al entre­pre­neur says one day, law­suits could be filed against those involved in unfair or immoral token sales, giv­ing much of the indus­try a bad look.

“Wait until these token sale things get lit­i­gat­ed. I mean, the amount of grift by so many of these ven­ture firms run­ning these sketchy deals where they would put in some amount mon­ey – this is my under­stand­ing of the scam because it was explained to me – you put in a lit­tle bit of equi­ty in at some crazy price, and then you get these tokens, and appar­ent­ly, you can just sell these tokens day one. So what hap­pens is, you price the equi­ty, but it’s mean­ing­less because real­ly what you’re get­ting is the right to get some amount of tokens, price goes crazy, you sell it and walk away…

You can do these deals where you just rinse and repeat these things. Wait till that gets exposed.” 

Pal­i­hapi­tiya also says that reg­u­la­tors might have a field day look­ing into some of the industry’s infra­struc­ture behind the scenes that may or may not be involved in insid­er trading.

“If they want to real­ly find the hon­ey­pots here, it’s the worst-kept secret in cryp­to: how much insid­er trad­ing is going on among the orga­ni­za­tions that run the exchanges, and their side pock­ets that they use to man­age liq­uid­i­ty. I mean, this is the biggest thing that’s been hap­pen­ing in crypto.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Fea­tured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia



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