Kevin O’Leary, also known as Mr. Wonderful from Shark Tank, stated that he believes most cryptocurrency tokens have no value and will eventually lose all their worth. Despite this, he currently holds seven cryptocurrencies, experiencing similar fluctuations as when he held 32 tokens before the fall of the FTX exchange.
O’Leary: Most Crypto Tokens Are Worthless
During a recent interview with Scott Melker, Kevin O’Leary shared his thoughts on investing in cryptocurrency. He expressed that most of the 10,000 available tokens hold no value and will eventually become worthless due to a lack of both volatility and volume. According to O’Leary, these tokens are insignificant.
Various data sources indicate that there are approximately 10,000 cryptocurrencies in existence. However, Coinmarketcap lists a total of 22,476 crypto tokens.
Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has also voiced his opinion that many cryptocurrency tokens will fail. He has warned investors to avoid succumbing to the “fear of missing out” (FOMO).
Additionally, O’Leary stated that he devalued all of his cryptocurrency investments to zero after FTX filed for bankruptcy in November. This was because he only invested in the exchange as he served as a spokesperson for them, for which he received $15 million as compensation.
While the FTX bankruptcy case is still ongoing, O’Leary shared that he re-entered the market and acquired new positions in cryptocurrencies such as bitcoin, polygon, ethereum, etc., to restore his portfolio and HBAR. He compared the volatility of his portfolio pre- and post-FTX, explaining that he now has seven positions and is experiencing the same level of volatility as when he held 32 positions before FTX’s collapse.
O’Leary emphasized that you don’t need to own many cryptocurrencies to be exposed to crypto volatility, saying that seven positions are sufficient. Despite being heavily criticized for his continued support of Sam Bankman-Fried, the founder of FTX, after the exchange’s downfall, O’Leary stated that he would still support Bankman-Fried in any future ventures, as he considers him to be an exceptional crypto trader.