Famous investor and “Shark Tank” star Kevin O’Leary has lashed out, saying that the majority of altcoins in the cryptocurrency market have now become “useless.”
O’Leary stated that the regulatory framework is rapidly becoming clearer, especially as newly introduced legal regulations are driving the market towards a Bitcoin and Ethereum-centered structure.
According to O’Leary, along with crypto assets, prediction markets and various speculative products are also undergoing a significant transformation. O’Leary noted that CFTC regulations have not yet fully protected the market, adding that only 30% of this process is complete. He noted that the regulatory framework initiated by the Genius Act represents a major turning point, particularly in the stablecoin market.
O’Leary stated that the transformation of stablecoins into “legal tender” instruments backed by US Treasury bonds and based on assets with maturities shorter than 92 days weakened Bitcoin’s potential as a payment instrument, noting that the world quickly adopted this new model. He added that the first major price crash occurred with the regulation of stablecoins.
O’Leary noted that another critical item on the agenda is the “Clarity Act,” adding that it is expected to be passed in the first half of 2025. Emphasizing that institutional investors will accelerate their entry into the market, O’Leary stated that this transformation will lead to a radical cleansing of the crypto world.
Stating that institutional investors will not show interest in assets other than Bitcoin and Ethereum, the famous investor stated that the data is very clear: “To capture approximately 90 percent of the returns and volatility in the crypto market, just owning Bitcoin and Ethereum is enough. Nothing else is needed.”
In this context, O’Leary stated that major funds will tend to add 3-5% of Bitcoin and Ethereum to their portfolios in the coming period, stating that this represents a “hard reality” for hundreds of altcoin projects. According to O’Leary, the market will undergo a cleansing process, with the majority of altcoins with no real use being deleted.
O’Leary noted that investors holding only Bitcoin and Ethereum have performed much better than altcoin holders in the last eight weeks, adding that for altcoins to make a comeback, they need to offer a real use case and allocate tens of millions of dollars in marketing budgets.
*This is not investment advice.