According to a tweet by Kevin O'Leary, the popular investor and Shark Tank host, crypto exchanges are going to keep going to zero until regulation is in place.
O'Leary believes that the lack of regulation is the reason why unregulated exchanges are blowing up and failing.
In his recent interview with Kitco, he highlighted that these unregulated exchanges incentivize account holders and users to buy their centralized "meritless" tokens to get discounts on trading fees.
O'Leary also notes that cryptocurrencies themselves are not the bad guys, but it is all of the rogue players and these unregulated exchanges that are causing the problems. O'Leary believes that all of these negative elements, which he refers to as "crap," will eventually go away as the market becomes more regulated.
He suggests that a regulated crypto market would be very interesting and would benefit everyone.
O'Leary predicts that a passport system will be launched by regulators in major markets like the U.S., Canada, Switzerland, United Arab Emirates, South American markets and others, which would require compliance with certain rules to operate.
As reported by U.Today, Ripple CTO David Schwartz criticized the Shark Tank star for blaming Binance for the collapse of FTX, its main rival.
During a Senate Banking Committee hearing, O'Leary claimed that Binance put FTX out of business, intentionally. Schwartz responded by stating that O'Leary was making these claims against an "absurdly massive amount of evidence."
Recently, Bahamian authorities arrested FTX's founder, Samuel Bankman-Fried, after U.S. federal prosecutors charged him with fraud. The former crypto tycoon was hit with new criminal charges earlier this week.
U.Today Editorial Team
Vladislav Sopov
Dan Burgin