Shark Tank star Kevin O’Leary comments and praises the changing crypto landscape after two major altcoin collapses and billions of dollars liquidation earlier this month.
“During the collapse of LUNA, this altcoin stood out with its performance”
Kevin O’Leary, whose views we have included in Kriptokoin.com news, in a new interview, TerraUSD (UST) algorithmic stablecoin and its affiliates. He says that the dramatic collapse of Terra (LUNA) is a painful part of a growing industry:
I think it’s actually a maturing process for the crypto market. Crypto projects have two basic baskets. One of them is highly speculative tokens and you could say UST and LUNA definitely fit that. People have realized that a stablecoin has to be stable, and since that means it has to be backed by something worth the asset, it is unlikely that they will go back to their old price in the context of stablecoins.
The Shark Tank star later states that USD Coin (USDC), owned by financial services company Circle, did not falter like other pseudo-stablecoins during the recent market crash:
You can note that USDC has not seen corrections as such. In fact, in this era of mass correction of other algorithmic or other quantitative or speculative stablecoins that have really been crushed, USDC issuing company Circle has managed to raise $200 million from Fidelity and $200 million from Blackrock. This is unprecedented for the company in terms of equity.
Which projects will rise to the top and which will disappear completely?
The famous billionaire points out that other speculative niches in the Blockchain world have also seen price drops like Non Fungible Tokens (NFT):
You have all the speculative stuff, NFTs fixed it. It’s been a nightmarish fix on the Las Vegas side of crypto, and I think it’s very good in that it helps separate the wheat from the chaff or, if you prefer, the cream from the milk.
Kevin O’Leary concludes, reaffirming his belief in crypto assets for the long term. On which projects will rise to the top and which will disappear completely, he says:
I am optimistic about crypto in terms of productivity. I’ve always said this: Bitcoin is software, not cryptocurrency. Ethereum software. Solana’s software. Helium software. Polygon software…We don’t know which of these projects will win, but the whole premise is that you want them for financial services. I still believe that in 10 years crypto will be the 12th sector of the economy, but not all existing tokens will exist.
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