Crypto-markets must hit “total panic” before resuscitation: Kevin O’Leary
Millionaire investor from the Shark Tank TV show Kevin O’Leary says there will be “total panic” and “massive volatility” in the crypto markets in the future before the industry turns back to stronger companies and clearer regulations.
Despite the recent fall of crypto-finance companies including Voyager Digital and Celsius, O’Leary told Cointelegraph on July 13 that we still lack a “really big event” seen in previous market cycles before returning to accelerated growth in space, which says:
“This passion game is played over and over again.”
Some investors have pointed to current market conditions as a result of over-leveraged centralized finance firms such as Voyager and Celsius. O’Leary said the problems with companies like them come from “idiot leaders” who had to be weeded out to make the industry more viable.
“It’s unfortunate that these companies have gone to zero, but you end up with much stronger species.”
Ben Samaroo, CEO of crypto-investment firm WonderFi Technologies, who was also present during the interview with Cointelegraph, said the recent bankruptcies are part of the “second wave of cryptocurrencies” in Canada’s history.
Samaroo explained that the first “cryptocurrency crisis” in Canada was marked by the fall of the now defunct crypto exchange QuadrigaCX in 2019, which saw $ 145 million in user funds disappear after the sudden death of founder Gerry Cotten.
The WonderFi CEO believes that this second wave of cryptocurrencies will make regulators focus on crypto-earning products like those from Voyager Digital.
“Canadian regulators are looking at everyone in Canada who offers earned products to find out what that means. They are looking through the ruins of the collapse to impose restrictions.”
The duo suggested that regulating stablecoin would be another major obstacle facing the industry. O’Leary stated unequivocally that “we need more stable coins, as many as there are goods”, but that they must keep the link.
Related: Celsius promises to return from bankruptcy, but expert fears recurrence of Mt Gox
Although he said that what happened to the destruction of the Terra ecosystem in May with the depegging of Terra USD (UST) was “good”, others can not go down the same path if they want to exist. He added that Tether (USDT) may experience more trouble after it faltered and fell to $ 0.95 in May.
“Tether breaking stick is going to be a big problem for regulators when they look at which stables are acceptable for platforms to use.”
Currently, USD Coin (USDC) is the preferred stable currency on Bitbuy and Coinberry. However, Samaroo noted that exchanges could list other stablecoins as long as it does not expose users to a “catastrophic event from a stablecoin that is not so stable.”
However, O’Leary and Samaroo appear to be aiming for long-term growth in the industry, with WonderFi recently listed on the Toronto Stock Exchange on June 20 and completing a $ 38.4 million purchase of the Canadian cryptocurrency exchange Coinberry on July 4. . now owns Bitbuy and Coinberry in Canada.
