According to Kevin O’Leary, the Shark Tank Star and Venture Capitalist, the fall down of overleveraged and large crypto firms could prove to be beneficial for the budding industry.
O’Leary while giving an interview to CNBC said that eradication of leading players with complex positions might turn out to be better for any financial market.
The entrepreneur goes on to explain “how bottoms are made in any market.” O’Leary says that a big player is required to go zero regardless if someone is in equities or debt or crypto or real estate. Mr. Wonderful believes that this event always helps no matter if it’s a long-term capital or if it’s one of these crypto infrastructure firms.
Clarifying, O’Leary said that although he doesn’t want the scenario to play out, every time a large player overleveraged fell to zero investors get a good bottom, he reiterated. Further, he explains that a rebuilding process starts from this point onwards, stating that “so if you have to sacrifice someone who used too much leverage, and it’s always leverage, somebody’s overleveraged.”
He notes that positions are complicated, transparent, and liquid and ultimately go to zero. He says that it’s okay if someone is approaching the zero mark. He said that it’s a good thing that is happening.
O’Leary believes that the crypto crash of big players could prove to be a blessing in disguise for those who manage to stay alive.
The Shark Tank Star says that everyone who emerges successfully will be great since everyone will get to learn from it, adding “that’s what I like about a washout event.” Moreover, the entrepreneur says that “I think we’re due for one in crypto land, and I don’t know whom it’s going to be, “ further stating “but I guarantee you 100% I’ve seen this movie before. You will learn later that somebody put on a heavily-levered position.”
Mr. Wonderful again reiterated that wiping out is a good thing.
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Source: https://www.thecoinrepublic.com/2022/06/20/shark-tank-star-kevin-oleary-believes-wipeout-of-big-players-in-crypto-industry-is-a-good-thing-for-crypto/