Bill Ackman is convinced that crypto is here to stay. His conviction on crypto comes as most of the community tries to regain confidence in the sector after the FTX fallout.
The billionaire investor and hedge fund manager insisted that he is still bullish about cryptos, despite the recent collapse of the FTX crypto exchange and the market turmoil that has followed it.
In a November 20 Twitter thread, the CEO and founder of Pershing Square Capital Management, a hedge fund management firm, said that he thinks “crypto is here to stay” despite recent challenges. However, he said that there is a need to increase oversight and eliminate all “fraudulent actors” in the space.
Bill Ackman is a billionaire American investor who most recently called for the removal of regulatory hiccups and easing regulations in New York to make the city a major cryptocurrency hub. He is also a direct investor in several crypto projects. He stated:
“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.”
Nevertheless, Ackman stated that like the invention of the telephone and the internet, the technology improves on the next with regards to its ability to facilitate fraud:
“The problem with crypto is that unethical promoters can create tokens simply to facilitate pump-and-dump schemes. It may be that the vast majority of crypto coins are used for fraudulent purposes rather than for building legitimate businesses.”
With that said, Bill Ackman believes that with proper oversight from the industry leaders, all the fraudulent actors” can be thrown out:
“All legitimate participants in the crypto ecosystem should therefore be highly incentivized to expose and eliminate fraudulent actors as they greatly increase the risk of regulatory intervention that will set back the positive potential impact of crypto for generations.”
The entrepreneur also stated that while he was initially a “crypto skeptic” he now sees the industry as having “the potential to greatly benefit society and grow the global economy.” He added:
“I was initially a crypto skeptic [but] I have come to believe that crypto can enable the formation of useful businesses and technologies that [before now] could not be created. The ability to issue a token to incentivize participants in a venture is a powerful lever in accessing a global workforce to advance a project.”
Ackman also noted that “sensible regulation and oversight” would be critical to help progress and push the technology to greater heights. The hedge fund manager’s tweet thread came in the wake of the recent FTX collapse.
Based on reports, Ackman originally praised former FTX CEO Sam Bankman-Fried for owning up to his mistakes but later deleted that tweet.