Valuable and Worthless Cryptocurrencies
Kevin O’Leary, the pride of the popular TV show, Shark Tank, shared his thought about valuable and worthless cryptocurrencies. He revealed his thoughts in a podcast interview of Wolf of All Street hosted by Scott Melker on Tuesday.
O’Leary opined that it hasn’t been long ago when crypto was introduced in the first place. However, in over 13 years, the industry is overpopulated with more than ten thousand them.
He opined that almost 99.9% of cryptocurrencies are irrelevant and do not hold any value but zero.
He argued that they are worthless because they don’t have nor would ever attract any commendable trade and exchange volume. Secondly, the concept of ‘volatility’ does not impact them at all and hence they are useless.
Unthinkably Long List of Cryptocurrencies
O’Leary opined that when it comes to ordinary fiats, they are limited and that is why a person can name most of them.
In the case of cryptocurrencies, the exact number of how many cryptocurrencies are there remains disputed, said O’Leary.
He said that some say total cryptocurrencies are about ten thousand but some say they are approximately twenty thousand. He referred to the Coinmarketcap report which determined the total number of digital currencies as 22,476.
According to O’Leary, only a handful of cryptocurrencies are worth something while the rest are nothing and bound to fail.
He also referred to the statement of the Securities & Exchange Commission’s Chairman, Gary Gensler. The Chairman of the SEC had said on many occasions that the majority of digital currencies are bound to fail miserably.
O’Leary then warned investors not to go after everything nor pay any attention to all newcomers.
He denied that the concept of ‘fear of missing out’ would have any impact on the newcomers.
Only a Couple of Digital Currencies Are Enough
O’Leary also told the interviewer that when FTX collapsed, he immediately re-adjusted his entire crypto holding at FTX.
It is widely known that O’Leary was well-connected with FTX as its brand ambassador as well as a notable investor. He told Wolf of Wall Street that for promoting FTX, the collapsed firm had paid him a fee of $15 Million.
He also told that after FTX, he invested his crypto funds in opening fresh positions in Bitcoin, Ethereum, and a couple more.
He informed me that approximately 7 positions he created in seven different currencies which he believed were worth investing in.
O’Leary then advised crypto investors that a few notable crypto coins are sufficient if they want to invest in crypto.
Post-FTX Collapse
Although O’Leary is not part of the investigation against FTX and its management, however, he was actively criticized after the firm’s collapse.
He faced criticism when he was found taking FTX’s and its founder’s side. Even though when allegations were made against the two, he continued to offer them moral support and defended FTX’s founder orally.
At one point, he claimed that if a second chance is given to him for supporting FTX’s founder, he would gladly avail of it.
His opinion with regard to FTX’s founder namely Sam Bankman-Fried is still a positive one. He believes that Bankman-Fried is innocent and shall prove his innocence.
He further opined about Bankman-Fried that he was a genius trader and would be pleased to work with him again.