“Many More Collapses To Come” – Kevin O’Leary’s Prediction On Future Of Crypto Market Like FTX’s

Investor and Shark Tank star Kevin O’Leary predicts that more unregulated crypto exchanges will suffer a similar fate as FTX and predicts that “massive outflows” will continue to occur in such platforms.

 

He also warns that there will be more “meltdowns” to come in the future and that this trend will repeat itself.”

 

Former spokesperson and advocate of the FTX exchange, which has been bankrupt, O’Leary told David Lin (Anchor of Kitco) in an interview that unregulates crypto exchanges were likely to flop.

 

He stated, “O’Leary is certain that similar failures, resulting in a total collapse, will occur in unregulated crypto exchanges and that this pattern will continue to repeat itself.”

 

“Unregulated crypto exchanges, which are not subject to regular audits, not registered and regulated by securities commissions and do not function under rules resembling outdated stock exchanges and brokerages, are experiencing a large outflow of money, according to Kevin O’Leary.

 

He warns that smart investors have learned from the failure of FTX and similar exchanges and will not wait for an explanation.”

 

According to Kevin O’Leary, if a crypto exchange is not willing to undergo an audit, be transparent, and disclose ownership, it should not expect to attract institutional investors. The failure of FTX in November led to calls for greater transparency from the crypto community, leading several centralized exchanges to complete proof-of-reserve audits and more announcing plans to do the same.

 

However, some experts, like a senior official from the SEC, have warned that proof of reserves does not provide a comprehensive view of a company’s financial situation and urged investors to be cautious about the claims made by such exchanges.

 

Auditing firms such as Mazars and Armanino have reportedly withdrawn their support for crypto companies and exchanges, with Mazars removing its audit for Binance and halting proof-of-reserve audits and Armanino stopping work with OKX and Gate.io.

 

O’Leary has stated that it is difficult to find an auditor willing to work in the current unregulated environment in the crypto industry, and Mark Cuban recently warned that wash trading on centralized exchanges could lead to a crypto “implosion.”

 

According to a December report by the National Bureau of Economic Research, as much as 70% of the volume on unregulated exchanges is wash trading.

 

O’Leary is increasing his investments in cryptocurrency, particularly Bitcoin, despite the current challenges facing the industry.

 

He said that he buys more when the price of Bitcoin drops below $17,000 and believes that the increasing regulation in the crypto market is a positive development in the long term.

 

 

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