Crypto Billionaire: I Will Get More Coins!

Kevin O’Leary, a venture capitalist and TV personality, stated that he will continue to invest in cryptocurrencies despite the FTX debacle. Here are the details…

Kevin O’Leary: I will buy more cryptocurrencies As we reported, O’Leary was an investor at FTX International. He said he made a terrible bet, but that he would learn from it. Institutional investors and venture capitalists (VCs) have come under scrutiny for missing all red flags in FTX, including their ties to Alameda Research and the complex institutional structure. This is the first time institutional investors have encountered this kind of situation when they start entering the crypto space in 2020. However, O’Leary says he will continue to invest in cryptocurrencies. O’Leary uses the following words:

I will still invest in crypto though. I lost money in my accounts. But that doesn’t stop me from buying more. I’m going to do that too. I take advantage of the fact that many of these currencies, tokens and coins have necessarily dropped as a result, possibly presenting a buying opportunity. This is my point of view.

This is the first time institutional investors are witnessing something like this in the crypto space.

Institutional investors are thought to be ignorant of many things about crypto. Therefore, it is believed that they have not done an adequate job in due diligence. But O’Leary says it won’t happen again. He argues that institutional investors and VCs will not fund new crypto exchanges unless they are regulated. However, the only regulation he mentioned was the Stablecoin Transparency Act, which requires control of stablecoin issuers like USDC or USDT.

The problem with FTX had nothing to do with stablecoins. The problem was that the funds were used in other investments without the consent of the clients. Therefore, the main issue here is “custody”. The crypto space is trying to solve this issue with elements such as “proof-of-reserve”, at least quarterly checks, internal insurance fund. For example, Coinbase states that “some of the coins in our storage systems are insured against loss from theft.”

However, there is no random regulation that will prevent a CEO from stealing or misusing the funds given to him. But there are systems in crypto that minimize these transfers. This can be an internal multi-signature, an external measure where a third party also has one of the keys. The only real analysis to all this is “self-custody”.

According to experts, the root of the problem is in the fiat system.

O’Leary continued to talk about FTX while pointing out that he will still invest in crypto. Institutional investors from many sides pointed out that FTX has nothing to do with crypto. He suggests that he is aware that this is an artifact of the fiat money system. This issue is not unique to crypto, nor is it due to regulation or lack thereof. It points to Wirecard, the Archegos hedge fund, Theranos, which has recently been in trouble. Instead, the problem is the need for a central database, even for digital transfers.

So fiat money is still based on the paper system. He argues that the system allows the CEO of a random exchange to steal funds. Many people think that cryptocurrencies will be integrated into our lives in the coming period. Therefore, if systems such as stablecoins are integrated where everything is “crypto”, there will be no need for central custody services, according to some. The analysis of hacking, theft or loss will probably be insurance.

According to experts, the global payment systems that crypto will integrate can strengthen the belief instead of shaking the belief in crypto. Because it shows what crypto is trying to solve. However, according to experts, modern banking systematizes operations like FTX. Just like FTX short selling client funds. The only difference is that they are saved in a system where faith-based relevance is not necessary and therefore faith cannot be misused. Cryptocurrencies are still in their prime and, according to many, it is necessary to deal with the problems of the fiat system right now.

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