Billionaire investor Bill Ackman says ‘crypto is here to stay’

Please fol­low and like us:
Pin Share

Bil­lion­aire investor and hedge fund man­ag­er Bill Ack­man says he remains bull­ish about cryp­tocur­ren­cies, despite the recent col­lapse of the FTX cryp­tocur­ren­cy exchange and the mar­ket tur­moil that has fol­lowed it.

In a Nov. 20 Twit­ter thread, the CEO and founder of hedge fund man­age­ment firm Per­sh­ing Square Cap­i­tal Man­age­ment said he believes that “cryp­to is here to stay” despite recent chal­lenges, though there’s a need to increase over­sight and remove “fraud­u­lent actors” in the space. 

Bill Ack­man is a bil­lion­aire Amer­i­can investor who most recent­ly called for the removal of reg­u­la­to­ry bar­ri­ers and eas­ing of reg­u­la­tions in New York in order to make the city a cryp­to hub. He is also a direct investor in a num­ber of cryp­tocur­ren­cy projects. 

“I think cryp­to is here to stay and with prop­er over­sight and reg­u­la­tion, it has the poten­tial to great­ly ben­e­fit soci­ety and grow the glob­al econ­o­my,” he said. 

How­ev­er, Ack­man said that like the inven­tion of the tele­phone and the inter­net, the tech­nol­o­gy improves on the next in terms of its abil­i­ty to facil­i­tate fraud:

“The prob­lem with cryp­to is that uneth­i­cal pro­mot­ers can cre­ate tokens sim­ply to facil­i­tate pump and dump schemes. It may in fact be that the vast major­i­ty of cryp­to coins are used for fraud­u­lent pur­pos­es rather than for build­ing legit­i­mate businesses.”

That being said, Ack­man said that with prop­er over­sight from indus­try lead­ers, these “fraud­u­lent actors” can be eliminated:

“All legit­i­mate par­tic­i­pants in the cryp­to ecosys­tem should there­fore be high­ly incen­tivized to expose and elim­i­nate fraud­u­lent actors as they great­ly increase the risk of reg­u­la­to­ry inter­ven­tion that will set back the pos­i­tive poten­tial impact of cryp­to for generations.” 

The investor also said while he was ini­tial­ly a “cryp­to skep­tic” he now sees it as hav­ing “the poten­tial to great­ly ben­e­fit soci­ety and grow the glob­al econ­o­my,” he said, adding: 

“I was ini­tial­ly a cryp­to skep­tic [but] I have come to believe that cryp­to can enable the for­ma­tion of use­ful busi­ness­es and tech­nolo­gies that [before now] could not be created.”

“The abil­i­ty to issue a token to incen­tivize par­tic­i­pants in a ven­ture is a pow­er­ful lever in access­ing a glob­al work­force to advance a project,” he added.

Ack­man added that “sen­si­ble reg­u­la­tion and over­sight” would be cru­cial in pro­gress­ing the tech­nol­o­gy forward. 

Relat­ed: Blockchain is as rev­o­lu­tion­ary as elec­tric­i­ty: Big Ideas with Jason Potts

The hedge fund manager’s tweet comes in light of the recent FTX collapse.

Accord­ing to reports, Ack­man ini­tial­ly praised for­mer FTX CEO Sam Bankman-Fried for own­ing up to his mis­takes, but lat­er delet­ed the tweet. 

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.