Shark Tank star Kevin O’Leary, aka Mr. Wonderful, claims that most crypto tokens are worthless and will eventually drop to zero in value. He added that he now owns seven crypto-currencies and is getting the same volatility as when he owned 32 crypto-currencies before the FTX crypto exchange collapsed.
O’Leary: most crypto-currency tokens are worthless.
Kevin O’Leary shared his views on crypto-currency investing in an interview with Scott Melker on the Wolf of All Streets podcast, published Tuesday. He stated:
10,000 chips, most of them worthless. They will eventually fall to zero because of the lack of volatility and lack of volume. They are irrelevant.
According to some data providers, there are currently about 10,000 crypto-currencies. Coinmarketcap, however, shows a total of 22,476 crypto-currency tokens.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has also repeatedly stated that most crypto-tokens will fail. He recently urged investors not to get caught up in the fear of missing out (FOMO).
O’Leary added that he marked all his crypto investments at zero when FTX filed for bankruptcy in November last year. The Shark Tank star only used FTX because he was the exchange’s spokesperson. FTX paid him $15 million to be its spokesperson.
While FTX’s bankruptcy case is still pending, Mr. Wonderful said, “In the meantime, to bring back our allocation, we just went to the market and bought new positions in bitcoin, polygon, ethereum, HBAR, just a few – seven positions.“
He explained, “We went back and looked at the volatility of our portfolio before FTX and now after FTX. We had 32 positions on the pre-FTX collapse, we now have seven and we get exactly the same volatility with a fraction of the actual number of tickers.“The Shark Tank star continued, “So you don’t have to own everything to be exposed to crypto-currency volatility“, elaborating:
You don’t need more than seven titles, you get the same volatility.
After the FTX collapse, O’Leary was heavily criticized for his continued support of disgraced founder Sam Bankman-Fried (SBF). He said he would support SBF again if he had another company, insisting that the former FTX CEO was a brilliant crypto trader.