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

Millionaire investor from the Shark Tank TV show Kevin O’Leary says there will be “total panic” and “massive volatility” in the crypto markets ahead before the industry swings back towards stronger companies and clearer rules.

Despite the recent decline of crypto-finance companies, including Voyager Digital and Celsius, O’Leary told the Cointelegraph on July 13 that we still lack a “really big event” seen in previous market cycles before returning to accelerated growth in space. indicating:

“This passion game is being played over and over again.”

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

“It’s unfortunate that these companies have gone to zero, but you end up with much stronger species.”

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

Samaroo explained that the first “cryptocurrency crisis” in Canada was marked by the fall of the now defunct cryptocurrency exchange QuadrigaCX in 2019, which saw $ 145 million in user funds disappear after the sudden death of founder Gerry Cotten.

WonderFi CEO believes that this second wave of cryptocurrencies will prompt regulators to focus on cryptocurrency products like those from Voyager Digital.

“Canadian regulators are looking at everyone in Canada who is offering earned products to find out what that means. They are looking through the rubble of the collapse to put restrictions on it.”

The duo suggested that regulating stablecoin would be another major hurdle for the industry. O’Leary stated unequivocally that “we need more stable coins, as many as there are commodities,” but that they must keep their stick.

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

Although he said that what happened to the destruction of the Terra ecosystem in May with the decoupling of Terra USD (UST) was “good”, others cannot go down the same path if they want to exist. He added that Tether (USDT) may experience more problems after it swirled on its stick and fell to $ 0.95 in May.

“Tether breaking pin will be a big issue for regulators as they look at which stables are acceptable for platforms to use.”

So far, USD Coin (USDC) is the preferred stack coin on Bitbuy and Coinberry. However, Samaroo noted that exchanges could list other stack coins as long as it does not expose users to a “catastrophic event from a stack coin that is not as stable.”

O’Leary and Samaroo appear to have their eyes set on the industry’s long-term growth, with WonderFi recently listed on the Toronto Stock Exchange on June 20 and completing a $ 38.4 million purchase of the Canadian crypto exchange Coinberry on the 4th. July. It now owns Bitbuy and Coinberry in Canada.