Lack of Regulations Will Trigger More Crypto Meltdowns, Predicts Kevin O’Leary

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Kevin O’Leary – a pop­u­lar Cana­di­an investor and host of the TV show Shark Tank – believes the unreg­u­lat­ed cryp­tocur­ren­cy envi­ron­ment will cause the col­lapse of oth­er companies.

How­ev­er, he remains a pro­po­nent of the indus­try, admit­ting that he invest­ed 5% of his wealth in bitcoin.

Future Trouble Seems Inevitable

In a recent inter­view for Kit­co News, O’Leary fore­cast­ed that the FTX demise will cer­tain­ly not be the last such event in the cryp­tocur­ren­cy space. He claimed some of the “unreg­u­lat­ed exchanges” are reluc­tant to work with an audit­ing firm to present accu­rate liq­uid­i­ty details, which has pushed insti­tu­tions away:

“If you’re ask­ing me if there’s going to be anoth­er melt­down to zero? Absolute­ly. One hun­dred per­cent it’ll hap­pen, and it’ll keep hap­pen­ing over and over and over again.”

Kevin_OLeary
Kevin O’Leary, Source: CNBC

Recall that the audit­ing com­pa­ny Mazars Group (whose for­mer clients were Binance and Crypto.com) recent­ly sus­pend­ed all work with cryp­tocur­ren­cy cus­tomers due to con­cerns regard­ing how plat­forms dis­play their proof-of-reserves.

“Frankly, you know, it’s very hard to find an audi­tor that wants to touch this stuff right now because of the unreg­u­lat­ed cow­boy envi­ron­ment. It’s all going to end, and yes, there’ll be many more zeros,” the Cana­di­an added.

Despite his con­cerns with trad­ing venues, O’Leary remains a keen sup­port­er of the dig­i­tal asset indus­try, par­tic­u­lar­ly bit­coin. He admit­ted buy­ing BTC amounts recent­ly, while in total, his allo­ca­tion to it rep­re­sents 5% of his wealth.

O’Leary and FTX

The entre­pre­neur was among the biggest advo­cates of FTX pri­or to the doom of the exchange. He served as its ambas­sador, for which he inked a $15 mil­lion agree­ment. O’Leary also declared in Octo­ber last year (a few weeks before the infa­mous crash) that the plat­form is among the safest places for investors. 

In addi­tion, the Cana­di­an owns 139,000 Class A Com­mon shares and 12,631 Series A Pre­ferred shares of West Realm Shires (the firm that con­trols FTX US), while his invest­ment firm – O’Leary Ven­tures – has 25,944 com­mon shares and 6,486 Series B‑1 Pre­ferred shares of FTX Trading.

He has since lost all of those funds but refused to clas­si­fy Sam Bankman-Fried (the for­mer CEO of FTX) as a fraudster. 

The Bahami­an author­i­ties recent­ly coop­er­at­ed with their US col­leagues to deport the 30-year-old Amer­i­can to his home­land. A New York Fed­er­al judge allowed his release after a record $250 mil­lion bond, and cur­rent­ly, SBF lives at his par­ents’ house, wear­ing a mon­i­tor­ing device.

He recent­ly plead­ed not guilty to mul­ti­ple charges, includ­ing mon­ey laun­der­ing con­spir­a­cy and wire fraud. His tri­al date is set for the begin­ning of October.

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