Entrepreneur and billionaire investor Kevin O’Leary says the collapse of large and over-leveraged crypto companies and altcoin projects could be hugely beneficial for the emerging industry. Here are the billionaire’s altcoin comments…
Resets are a boon for those who can survive…
In a recent interview, O’Leary said that a wipeout involving a major player with complex positions could be good for any financial market.
Let me tell you how bottoms are made in any market. I don’t care if you’re in stocks or debt or crypto or real estate. You always need a big player to go to zero. Whether it’s a long-term capital or one of these crypto infrastructure companies, it always helps. I don’t want that to happen, but when you have a big player it always gives you a good bottom, it’s overly leveraged, it goes to zero. This always tends to be the start of the rebuilding process, so if you have to sacrifice someone using a lot of leverage and it’s always leverage, someone is overloaded. Positions are complex. They are not transparent. They are not liquid and go to zero. There is someone on the verge of zero. No problem. In fact, I’d argue it’s a good thing when we get it.
According to O’Leary, the collapse of a major crypto firm will be a boon for survivors. The billionaire investor continued his comments on altcoin projects and the cryptocurrency market:
It’s going to be great for anyone who survives because everyone will learn from it, and that’s what I love about a purge. I think we have time for one in the crypto industry and I don’t know who it will be, but I can guarantee you 100 percent that I’ve seen this movie before. You will then learn that someone has entered a heavy position. They’ve been deleted and that’s fine. This is a good thing.
While Bitcoin and altcoin projects suffer price losses, big investors are making huge losses.
As we reported on Kriptokoin.com, the two companies that have invested the most in Bitcoin among publicly traded companies have lost almost $ 2 billion in their investments. Microstrategy’s 130 thousand, Tesla’s 43 thousand Bitcoin (BTC) depreciated seriously in dollar terms. Looking at Microstrategy, Michael Saylor spent $3,965,863,658 for 129,218 BTC.
The sudden depreciation of Bitcoin recently wiped out all the profits the company had made before, causing the value of its investment to decline, that is, to incur losses. The profit of $ 1 billion from 43,200 BTC, which Tesla bought for $ 1.5 billion during the 2021 bull market, also flew away.
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