Crypto markets need to hit ‘total panic’ before revival: Kevin O’Leary

cointelegraph.com:

Millionaire investor from the Shark Tank TV show Kevin O’Leary says there’s going to be “total panic” and “massive volatility” in the crypto markets ahead before the industry swings back toward stronger firms and clearer regulations.

Despite the recent fall of crypto finance firms including Voyager Digital and Celsius, O’Leary told Cointelegraph on July 13 that we’re still missing a “real big event” seen in previous market cycles before we go back to accelerated growth in the space, stating: 

Some investors have pointed to the current market conditions as a result of over-leveraged centralized finance firms such as Voyager and Celsius. O’Leary said the problems with firms like those come from “idiot managers” who needed to be weeded out to make the industry more viable.

Ben Samaroo, CEO of crypto investment support firm WonderFi Technologies who was also present during the interview with Cointelegraph said the recent bankruptcies are part of the “second wave of crypto crises” in Canada’s history.

Samaroo explained that the first “crypto crisis” in Canada was characterized by the fall of now-defunct crypto exchange QuadrigaCX in 2019, which saw $145 million in user funds go missing after the sudden death of its founder Gerry Cotten. 

The WonderFi CEO believes that this second wave of crypto crises will have regulators focusing on crypto earn products like those from Voyager Digital.

The duo suggested that stablecoin regulation will be another major hurdle facing the industry. O’Leary stated unequivocally that “we need more stablecoins, as many as there are commodities,” but that they must keep their peg.

Related: Celsius vows to return from bankruptcy but expert fears repeat of Mt Gox

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