Kevin O’Leary Says He Doesn’t Want to be a Crypto Cowboy

Kevin O’Leary Says He Doesn’t Want to be a Crypto Cowboy

Crypto News News
November 27, 2021 by Elias Powell
79
Renowned celebrity investor, Kevin O’Leary talked about his crypto investments recently. He stated that even though he is investing in these digital currencies, it is not something that he takes lightly. O’Leary said that he preferred to consult with the regulators about the crypto space instead of just being a ‘crypto cowboy’. He stated that
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Renowned celebrity investor, Kevin O’Leary talked about his crypto investments recently. He stated that even though he is investing in these digital currencies, it is not something that he takes lightly. O’Leary said that he preferred to consult with the regulators about the crypto space instead of just being a ‘crypto cowboy’. He stated that consulting with regulators to assess the possibilities regarding their stance on the digital asset space before investing in crypto was a better idea. O’Leary went on to say that he did not wish to spend any money on litigation against the Securities and Exchange Commission (SEC) in the US because that was a very bad idea.

Of course, he was referring to the case that the US regulator has filed against the fintech company, Ripple Labs in relation to the XRP token. The SEC had decided to legally pursue Ripple because of its concerns about the company’s ties to the XRP, which is categorized as the seventh biggest cryptocurrency in the world. According to the allegations made by the SEC, Ripple and its executives, including its CEO, had sold around $1.3 billion worth of XRP tokens through an unregistered securities offering. 

Chairman of O’Shares ETF and an investor on ‘Shark Tank’, O’Leary said that he only preferred to comply with and accommodate regulators because he considers that is where the real capital can be found. He stated that he didn’t have any intention of being a crypto cowboy and didn’t want others to be unhappy with him. He went on to say that he had a number of assets in the real world where he had invested and they required him to be fully compliant. O’Leary also talked about digital cash that has been pegged to national currencies, which are termed as ‘stablecoins’ in the crypto space.

He stated that he did not have any wish of holding the digital Chinese yuan or the digital Russian ruble because he did not have enough knowledge about the blockchain of these countries, or how they were monitoring the ownership of these CBDCs. Instead, O’Leary stated that the biggest opportunity associated with these stablecoins is with the ones that are backed by the US dollar. He accepted that some might consider this counterintuitive, considering that inflation is rising in the US right now and this means that the purchasing power of the dollar is falling.

However, he elaborated that after having sold some of his commercial property investments in the last few years, he had a lot of cash, and increasing inflation meant that it would lose its buying power. He said that buying USD coins could actually help him make a 6% return. This is the second-largest stablecoin in the world that was introduced by a company named Circle and it is pegged to the US dollar. However, O’Leary clarified that he would only be able to invest 5% of his cash in the stablecoin for now. But, he did say that the US had the opportunity to use ‘stablecoins’ for leading the charge. 

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