Kevin O’Leary Warns Of Crypto Meltdowns, “There Will Be Many More Zeros”
Kevin O’Leary Warns Of Crypto Meltdowns, “There Will Be Many More Zeros”.
Despite previously having been a big supporter and a major sponsor of the now-bankrupt crypto exchange FTX, Kevin O’Leary is now warning against unregulated exchanges and what they may entail.
More Crypto Meltdowns
In a recent Jan. 17 interview with Kitco News, the Shark Tank star and venture capitalist Kevin O’Leary warns the public that they should expect more crypto exchanges to undergo a meltdown similar to that of FTX’s in the future.
“I’m not worried, but if you’re asking me, will there be another meltdown to zero absolutely 100% it’ll happen, and it’ll keep happening over and over.” O’Leary said.
He explains that the main reason these meltdowns are likely going to happen is due to the lack of regulations being implemented.
“They’re so unregulated, these unregulated exchanges are just… They’re all going to go zero. And what’s going to come out of it eventually, is a regulated crypto market which I think will be very interesting because there’s 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 these unregulated exchanges and the issuance of all these meritless tokens, the tokens on the exchanges. All of this crap… It’s all going to go away.”
“If you’re not willing to be audited, […] you don’t have an audit, you don’t want to be transparent, you don’t want to disclose ownership, why should institutional capital stay? Of course, it’s not going to.” O’Leary continues, “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.”
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Confidence In Crypto
Despite his pessimistic views on all the unregulated crypto exchanges, O’Leary continues to be pessimistic and confident in cryptocurrencies themselves.
The Shark Tank star shows enthusiasm for Bitcoin particularly, which he says he’s constantly investing in when he sees the chance.
“I have been going back into crypto markets lately. Any time Bitcoin drops below $17,000 I add to our positions there. Crypto is getting very interesting because we’re finally starting to see the bearer of regulation coming into play and I think long-term that’s a good thing.”
Related: Polygon (MATIC) Braces For Its Newest Hard Fork!
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