🚨 Time is Running Out: Reserve Your Spot in the Lucky Draw & Claim Rewards! START NOW
Learn to gain real rewards

Learn to gain real rewards

Collect Bits, boost your Degree and gain actual rewards!

New
Video Courses
Video Courses
Deprecated
Scale your career with online video courses. Dive into your learning adventure!
Learn to gain real rewards

Learn to gain real rewards

Collect Bits, boost your Degree and gain actual rewards!

New
Video Courses
Video Courses
Deprecated
Scale your career with online video courses. Dive into your learning adventure!

FTX Collapse Just the Beginning: O'Leary Predicts More Crypto "Meltdowns"

FTX Collapse Just the Beginning: O'Leary Predicts More Crypto "Meltdowns"

Investor and Shark Tank star Kevin O'Leary has warned that more unregulated cryptocurrency exchanges will fail in the wake of FTX's collapse.

Speaking to Kitco anchor David Lin in a Jan. 17 interview, O'Leary, who was a spokesperson for the now-bankrupt FTX exchange, said that FTX was just one in a long line of "unregulated exchanges" likely to fail.

O'Leary also warned about unregulated crypto exchanges that aren't subject to regular auditing.  

What is FUD in Crypto? (Fear, Uncertainty & Doubt Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is FUD in Crypto? (Fear, Uncertainty & Doubt Explained)

What is FUD in Crypto? (Fear, Uncertainty & Doubt Explained) What is FUD in Crypto? (Fear, Uncertainty & Doubt Explained)

According to the Shark Tank star, if these exchanges are not willing to be audited and provide transparency, institutional capital will not stay.

“You don't have an audit, you don’t want to be transparent, you don’t want to disclose ownership... Why should institutional capital stay? Of course, it's not going to,” he stated.

The collapse of FTX in November prompted calls for greater transparency from crypto exchanges. Within weeks, five centralized exchanges completed proof-of-reserve audits, while many more announced plans to do the same.

"If you're asking me if there's going to be another meltdown to zero? Absolutely. One hundred percent it'll happen, and it'll keep happening over and over and over again," O'Leary says.

However, some observers have warned that proof-of-reserves don't paint a true picture of a company's financial position and have urged investors to be "very wary" of the claims being made. Some auditing firms, such as FTX's auditor Armanino, have reportedly stopped working with crypto exchanges due to the "unregulated cowboy environment."

Despite the warnings, O'Leary says he's doubling down on his crypto investments, particularly in Bitcoin, and sees the introduction of regulation as a positive development for the long term.

In other news, Digital Currency Group (DCG), a leading venture capital firm in the crypto industry, has announced that its quarterly dividends are halted.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
binance
×
Verified

$600 WELCOME BONUS

Earn Huge Exclusive Binance Learners Rewards
Rating