Kevin O’Leary’s Prediction of Crypto Exchange Failures
• Kevin O’Leary, venture capitalist and investor on the show Shark Tank, recently predicted that digital asset exchanges will continue to fail unless the cryptocurrency industry is subjected to stringent new regulations.
• O’Leary made his comments in response to the FTX fiasco and argued that crypto regulation would reduce the impact rogue players have on the market.
• His comments were met with criticism from the crypto community, particularly those who suggested his views had much to do with his experience with FTX.
Background on FTX Fiasco
The FTX fiasco occurred earlier in February and drew attention from decision-makers about the need for regulating crypto. Kevin O’Leary commented on this incident, saying that he didn’t expect a lot more news or dialogue other than about recovery but that it “poked the bear in Washington.” He hypothesized that FTX was put out of business by a competing cryptocurrency exchange while making a testimony to the Senate Banking Committee in December.
O’Leary Predicts More Crypto Exchange Failures
O’Leary maintained his stance that without regulation, there will be an increase in companies declaring bankruptcy and “another meltdown to zero.” In a tweet he posted on February 23rd, O’Leary said: “We’re going to keep seeing these crypto exchanges going to ZERO, until we actually force regulation on these guys.”
Crypto Community Responds
Most of the responses to his tweet suggested that O’Leary’s current views had much to do with his experience with FTX. Blockchain architect MartyParty emphasized that “FTX was never a crypto exchange” but rather a ” honeypot designed by a traditional finance criminal.” The tweet stirred criticism from other members of the cryptocurrency community as well.
It is clear from Kevin O’Leary’s comments and overall sentiment regarding unregulated crypto exchanges; there must be stricter regulations imposed if they want any chance at success in today’s market. Despite criticism from some members of the cryptocurrency community, many agree with him and are looking forward to these changes being implemented soon so they can feel safe investing their money into these digital assets without fear of them disappearing overnight due to fraudulent activities or manipulation by outside forces