Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says that most crypto tokens are worthless and will eventually lose their value to zero. He added that he now owns seven cryptocurrencies and is getting the same volatility that he had when he owned 32 crypto tokens before the FTX cryptocurrency exchange collapsed.
O’Leary: Most Crypto Tokens Have No Value
Kevin O’Leary shared his thoughts on investing in cryptocurrency in an interview with Scott Melker on the Wolf of All Streets podcast, published Tuesday. He said:
10,000 chips, most of them worthless. Eventually they will just hit zero due to lack of volatility and lack of volume. They are irrelevant.
According to some data providers, there are currently about 10,000 cryptocurrencies. Coinmarketcap, however, shows a total of 22,476 crypto tokens.
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has also said on several occasions that most crypto tokens will fail. He recently urged investors not to get caught up in the fear of missing out (FOMO).
Portfolio diversification
O’Leary added that he marked all of his cryptocurrency investments to zero when FTX filed for bankruptcy in November of last year. The Shark Tank star only used FTX because he was a spokesperson for the exchange. FTX paid her $15 million to be his spokesperson.
While the FTX bankruptcy case is still ongoing, Mr. Wonderful said: “In the meantime, to get our allocation back, we just went into the market and bought new positions in bitcoin, polygon, ethereum, HBAR, just a few – seven positions. ”
He explained: “We went back to look at our portfolio volatility before FTX and now after FTX. We had 32 positions before the FTX crash, now we have seven and we are getting exactly the same volatility with a fraction of the actual number of tickers.” The Shark Tank star continued: “So you don’t need to have everything to be exposed to the volatility of cryptocurrencies”, explaining:
You don’t need more than seven, you get the same volatility.
Following the collapse of FTX, O’Leary was heavily criticized for his continued support of the disgraced Sam Bankman-Fried (SBF). He said he would back SBF again if he had another company, insisting that the former FTX CEO was a brilliant cryptocurrency trader.
Do you agree with Kevin O’Leary that most crypto tokens are worthless? Let us know in the comments section.
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