Kevin O’Leary of Shark Tank fame, also known for his investing savvy had this to say about the crypto market. Complete panic due to the volatility in the crypto market is the only way to ensure that the bottom is reached. Once that happens, shaky companies with bad management will not be part of the landscape anymore. That is the only way to ensure that the industry experiences the best growth with clear regulation.
Given the fall of crypto firms like 3AC, Celsius and Voyager Digital, O’Leary said that a big event is still missing. Market cycles up to now haven’t experienced it and once it happens, growth can happen in an accelerated manner. Investors do point out that the current conditions in the market are a result of many finance firms being over-leveraged. In O’Leary’s opinion, these problems occurred because of “idiot managers”. They must be forced out to ensure industry viability.
WonderFi Technologies’ Ben Samaroo also chipped in with his assessment of the industry’s state. He said that bankruptcies that occurred are part of the second wave of the crisis. WonderFi is based in Canada. According to Mr. Samaroo, the first wave included the fall of QuadrigaCX as far back as 2019. The unexpected death of the company’s founder resulted in a loss of $145 million in investor funds.
According to both men, regulation stablecoins will pose another hurdle to the crypto industry. They both agreed that stablecoins are needed in the market because of the range of available commodities. Though the Terra system was destroyed, and it was a good development, other companies have to rethink their strategies. This rethink will ensure their continued survival.
