Kevin O’Leary thinks It is important that the crypto market be prepared for another FTX-like meltdown, as this will 100% happen.
According to the venture capitalist and “Shark Tank” star, crypto needs to move away from a “unregulated cowboy environment” that’s full of rogue players.
He believes the scenario in which an exchange bursts will continue until regulations are changed to prevent them from happening again..

Kevin O’Leary, the Chairman of O’Leary Ventures and a seasoned investor, has shared his outlook on the crypto market, suggesting in a recent interview that the industry could yet see another major meltdown.

Particularly, the ‘Shark Tank’ star believes more unregulated cryptocurrency exchanges will fail, even as the regulatory landscape improves to put rogue players in check.

O’Leary says new exchange collapses 100% will happen

O’Leary came under heavy criticism in the aftermath of the collapse of FTX, with his role as a spokesperson attracting the ire of Crypto Twitter even as the FTX Token plummeted and he claimed he lost money on the exchange.

Now, he claims he can’t buy any of these tokens. He also stated that platforms encouraging customers to buy tokens offering trading fees discounts are perpetuating an incentive scheme that will see many people lose money.

Asked whether he thinks there’s going to be another FTX, O’Leary noted there would. He told Kitco News anchor David Lin on Tuesday that it doesn’t worry him.

“I’m not worried, but if you’re asking me, will there be another meltdown to zero absolutely 100% it’ll happen, and it’ll keep happening over and over. All these exchanges, all unregulated exchanges are experiencing massive outflows right now. The smart money has got the joke, they saw what happened with FTX and are not sitting around for an explanation.”

The venture capitalist went on to highlight that any exchanges not willing to be fully and properly audited – those that still don’t fancy transparency – will see an exodus of institutional capital. On such exchanges he said, the “unregulated cowboy environment” will end. There will be many more as the space matures within a robust regulatory framework.

“I think we just need to treat crypto like any other regulated asset,” he noted, adding that this is likely to happen sooner as more companies, including USD Coin stablecoin issuer Circle, pursue a proper regulatory environment.