Entrepreneur Kevin O’Leary, one of the hosts of the American TV show “Shark Tank”, said that he is 100% sure that companies in the cryptocurrency market will go to zero at some point. This was stated in an interview with the YouTube channel Kitco News on Tuesday (17).
“I’m not worried, but if you asked me if there was going to be another meltdown leading to zero, there would be a 100% chance. O’Leary said:
The businessman is very pessimistic, as he believes that even the strictest regulation by the authorities can prevent this. “It won’t change fraud. It will make it easier for people to understand what the rules are.”
Another point the presenter made is the hearings that the US Senate has requested for every crisis the sector faces. O’Leary has been involved in some, and says lawmakers are “disappointed.”
They are tired of organizing these hearings every six months every time one of these crypto companies gets blown up. “They are very disorganized,” he said.
Kevin O’Leary’s complete disappointment may stem from the fact that he was an ambassador for FTX. The presenter’s company, O’Leary Productions, owns 184,061 common and preferred shares of FTX.
In December 2022, O’Leary criticized the cryptocurrency exchange – claiming it had intentionally crashed its rival FTX.
Speaking at the US Senate Committee on Banking, Housing, and Urban Affairs hearing, the well-known entrepreneur also said that Binance is now a “massive, unregulated monopoly.”
O’Leary—who invests heavily in FTX—told the hearing, “I have an opinion, not records. One deliberately put the other out of business.”
Sell CZ tokens
Binance, the world’s largest cryptocurrency exchange, played a major role in causing the collapse of rival FTX last month.
Binance CEO Changpeng “CZ” Zhao announced that he would sell his exchange’s holdings of the native FTX token, a move that led to a liquidity crunch. Days later, the competitor filed for bankruptcy.
The stock bankruptcy has hit the cryptocurrency market hard – including many companies that are exposed to the giant.
O’Leary also called for stronger regulation, noting that FTX’s derivatives trading platform, LedgerX, was “the only entity that didn’t go to zero” after the crash because it was regulated by the Commodity Futures Trading Commission.
And he wasn’t the only one calling for it: Sen. Cynthia Loomis (R-W) told the session that it was time to “separate digital assets from corrupt organizations.”
“FTX is a very old scam,” she said. The points being judged here are poor management, failure of people and inadequate controls. We need to regulate this business and place digital assets within our existing financial framework.”
Former FTX CEO and founder Sam Bankman-Fried was arrested in the Bahamas over the weekend after US Federal Police requested his extradition from FTX’s home country. He is now under investigation and faces eight criminal charges.
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