Kevin O’Leary’s Predictions on Crypto Market Volatility
Kevin O’Leary, the millionaire investor known from the Shark Tank TV show, has set the crypto world abuzz with his recent remarks about impending “total panic” and “massive volatility” ahead in the industry. Amidst the rubble of fallen firms like Voyager Digital and Celsius, O’Leary believes we are yet to see that legendary “real big event” that typically signals a turn toward accelerated growth. In his words, “This passion play gets played out over and over again.” Who knew the world of crypto could be so dramatic?
Lessons from Failures: Out With the Old, In With the Stronger
He hasn’t minced words about the root causes behind the chaos either. O’Leary points at “idiot managers” in these centralized finance firms as the unfortunate culprits that led to their demise. Yet, as tragic as the downfall of these companies may be, there’s a silver lining: “You end up with much stronger species.” It’s a bit like nature’s way of saying, “Survival of the fittest, folks!”
The Second Wave of Crypto Crises
Joining O’Leary in this conversation was Ben Samaroo, CEO of WonderFi Technologies, who spoke about what he dubbed the second wave of crypto crises hitting Canada. The first wave? The infamous collapse of QuadrigaCX in 2019, which caused a staggering $145 million in user funds to vanish after its founder’s unexpected death. Samaroo explained, “Regulators are looking through the rubble of the collapse to layer in restrictions.” Talk about a constructive post-mortem!
Stablecoins: The Next Regulatory Hurdle
As the industry flounders through its ups and downs, O’Leary argues for the necessity of stablecoins, not just any stablecoins, but a variety equivalent to the number of commodities. However, with great stability comes even greater responsibility—keeping that precious peg intact. The collapse of the Terra USD ecosystem serves as a stark warning. If others wish to survive, they’d better learn from it! When Tether (USDT) faced its own turmoil in May, falling to $0.95, O’Leary cautioned us, “Tether breaking peg is going to be a big problem for regulators.”
The Horizons Ahead
For the time being, USD Coin (USDC) takes the crown as the favorite stablecoin on popular exchanges like Bitbuy and Coinberry. However, Samaroo highlighted a cautious approach to listing new stablecoins to prevent catastrophic risks. As they say, better safe than sorry!
A Bright Future for Crypto?
Despite the turmoil, both O’Leary and Samaroo remain optimistic about the crypto industry’s long-term growth. WonderFi’s recent successful listing on the Toronto Stock Exchange and its acquisition of Coinberry for $38.4 million signifies that they are not just surviving but thriving—pointing to a potential recovery. In the world of cryptos, nobody truly knows what’s next, but one thing is certain: it’s bound to be a wild ride!
