SNEAK PEEK
- Bill Ackman’s verdict on cryptocurrency comes as a large portion of the community works to rebuild trust in the sector after the FTX scandal.
- Billionaire investor and hedge fund manager claim he is still optimistic about cryptocurrencies. Despite the recent collapse of the FTX cryptocurrency exchange and the market volatility that followed it.
- American billionaire investor Bill Ackman recently demanded that New York City’s regulations are loosened and regulatory impediments removed in order to transform the city into a center for the cryptocurrency industry.
Despite recent setbacks, the CEO and founder of hedge fund management company Pershing Square Capital Management said he still thinks “crypto is here to stay,” but that there has to be more regulation and “fraudulent individuals” removed from the market.
The telephone, the internet, and crypto share one thing in common. Each technology improves on the next in terms of its ability to facilitate fraud. As such, I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to
— Bill Ackman (@BillAckman) November 20, 2022
In addition, he is a direct investor in several cryptocurrency initiatives. I believe that cryptocurrencies are here to stay, and I believe that they may substantially advance society and the global economy with the right oversight and regulation. However, Ackman claimed that the technology advances from the previous in terms of its capacity to support fraud, much as the invention of the telephone and the internet.
The issue with cryptocurrency is that dishonest promoters can produce tokens purely for the purpose of pump-and-dump operations. In reality, it’s possible that most cryptocurrencies are utilized for illegal activities rather than establishing trustworthy enterprises.
Having said that, according to Ackman, these “fraudulent actors” can be stopped with the help of industry leaders exercising effective oversight:
Since fraudulent actors considerably increase the likelihood of regulatory interference, which will set back the potential benefits of cryptocurrency for generations, all legitimate participants in the crypto ecosystem should be extremely motivated to uncover and destroy them.”
In addition, the investor added that after being a “crypto skeptic” at first, he now believes that it has “the ability to tremendously help society and boost the global economy,” he said, adding:
“Although I was first skeptical of cryptocurrencies, I have since come to feel that they can help build valuable enterprises and technology that [up until now] could not be developed. In order to promote a project, he continued, “the capacity to issue a token to encourage participation in a venture is a tremendous lever.”
To advance the technology, Ackman continued, “appropriate regulation and oversight” will be essential.
