- According to Kevin, the companies that have ‘idiot managers’ are going to be washed away.
- Ben Samaroo believes that the ‘second wave of crypto crisis’ is the reason behind the recent bankruptcies.
- According to both Kevin and Ben, one of the biggest challenges which are going to be faced by the industry is the regulation of stablecoins.
Kevin’s Statement
Just like a ball bounces off after reaching its bottom-most point, Legendary investor Kevin O’Leary believes that the same is going to happen in the case of crypto markets. The state of ‘total panic defines this market bottom.’ According to Kevin, the companies that have ‘idiot managers’ are going to be washed away. This way, this industry will get cleansed up. After that, the crypto industry, according to the most famous shark, Kevin O’Leary, will come back stronger than ever, with rules and regulations.
There are a lot of crypto finance firms that go bankrupt or struggle for insolvency during this bear market. Some of the major include:
- Voyager Digital
- Celcius Network
- Three Arrows Capital
Kevin O’Leary believes that the reason behind the falling of firms like these is the stupidity of managers. These managers need to be weeded out. Only then will the industry grow. Ben Samaroo believes that the ‘second wave of crypto crisis’ is the reason behind the recent bankruptcies. Samaroo is the CEO of crypto investment firm WonderFi Technologies.
What is The Future of Stablecoins?
Samaroo is referring to the first crypto crisis that Canada witnessed in 2019. This happened when the then-famous crypto exchange QuadrigaCX saw its $145 million stolen. According to Samaroo, the second wave of the crypto crisis will focus on crypto earn products. These include companies like Voyager Digital.
According to both Kevin and Ben, one of the biggest challenges which are going to be faced by the industry is the regulation of stablecoins. O’Leary says that we need more stablecoins as much as there are commodities. The only thing is- they need to keep their peg. As of this writing, one of the most trusted stablecoins is the USD Coin or the USDC.
Both the investors believe in the long-term growth of cryptocurrencies as a whole. What will happen in the cryptocurrency market in the short term is still a big mystery.
Source: https://www.thecoinrepublic.com/2022/07/15/legendary-investor-kevin-oleary-on-the-future-of-crypto/