Bill Ackman becomes the latest industry player to remain bullish about crypto. His tweet comes at a time when the crypto winter cuts across all assets and the FTX collapse.
You would recall that since the FTX collapse, several industry players have been releasing statements. Most of these statements show a loss of confidence in the crypto market. However, Bill Ackman believes "crypto is here to stay."
Bill Ackman is a prominent industry player in the crypto ecosystem. He is the Chief Executive Officer (CEO) and the founder of Pershing Square Capital Management — a hedge fund management firm.
In his latest statement, he said he believes "crypto is here to stay" amidst the recent challenges and happenings in the market. He said there is a need to remove fraudulent actors in the crypto space. He added that increasing oversight and strict compliance would help eliminate these fraudulent actors.
You would recall that Bill Ackman has continued to call for removing regulatory barriers in the crypto ecosystem. Similarly, the billionaire American investor called for the ease of New York regulations to enable the City to become a crypto hub.
Furthermore, he believes that cryptocurrency has the potential to benefit investors and society. In addition, it can grow the global economy. "I think crypto is here to stay, and with proper oversight and regulation— it has the potential to greatly benefit society and grow the global economy," he said.
However, Bill Ackman raised an important issue that slowed down cryptocurrency's mainstream advancement. He raised the issue of using crypto for fraudulent activities. He said,
It may, in fact, be that the vast majority of crypto coins are used for fraudulent purposes— rather than for building legitimate businesses."
Similarly, he said these fraudulent actors will greatly increase the risk of regulatory intervention that "will set back the positive potential impact of crypto for generations." That is the more fraudulent acts in the ecosystem, the more the regulations and these regulations impede growth.
Furthermore, being an investor, he said he was initially a "crypto skeptic." However, he now sees it as having the potential to benefit society and the economy.
According to the CEO of Pershing Square Capital Management, he identified some solutions to fraudulent activities in the crypto ecosystem. He said "sensible regulation and oversight" would be crucial to the progress of the technology.
Similarly, he said,
All legitimate participants in the crypto ecosystem should be highly incentivised to expose and eliminate fraudulent actors."
There are expectations that if these solutions are adhered to, fraudulent activities and their actors will reduce.
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