The Shark Tank star said all unregulated exchanges are seeing “massive outflows” right now and rightly so.
Unregulated crypto exchanges will continue to fall like dominoes after FTX, with many more “collapses” to come, warns Shark Tank star and investor Kevin O ‘Leary.
O’Leary, a former spokesperson, and promoter for the now unpaid FTX exchange told Kitco anchor David Lin on Jan. In question 17 the crash is just one of a long line of “unlawful changes” that can occur:
“If you ask me, will there be another fall in zero? Absolutely 100% it will happen, and it will continue to happen again and again.
Unregulated exchanges are those that are not subject to regular inspections, are not registered and controlled by security officials, and do not operate under the same rules as traditional exchanges and brokerage houses.
“Well, all these changes, all these uncontrolled changes are having a big exit now. Smart money with games. They saw what happened at FTX and they are not sitting for explanations,” he said. The Shark Tank star then issued a stern warning about so-called “unlawful” crypto exchanges.
“If you’re not ready to be audited, […] you don’t have an audit, you don’t want to be transparent, you don’t want to demonstrate authority, why would corporate capital be there? Of course, it’s not. »
The collapse of FTX in November sparked strong calls from the community for greater transparency in crypto exchanges. In a few weeks, five central exchanges have completed the proof of reserve survey, while many others have announced plans to do the same. However, some observers, including the head of the US Securities and Exchange Commission (SEC), warned that the evidence of securities does not describe the true picture of the company’s financial situation and appealed to investors as they are “suspicious”. do it.
Some audiences, such as Mazars, have apparently withdrawn their support for the crypto industry. In December, the company withdrew its audit of the crypto exchange Binance and announced that it stopped doing proof of audit for the crypto industry altogether.
Other research firms such as FTX analyst Armanino have stopped working on crypto exchanges such as OKX and Gate.io. O’Leary said:
“Honestly, you know, it’s hard to find an audience that wants to get into this thing now because of the uncontrolled environment. Everything will end and yes, there will be have many zeros.
Earlier this month, Mark Cuban, another guest of O’Leary’s Shark Tank, told The Street that crypto washout trading and centralized exchanges will be the cause of another crypto “implosion.”
According to a December report from the National Bureau of Economic Research (NBER), up to 70% of illegal exchanges are fraudulent transactions. Despite the noise, O’Leary says he’s staying down on his crypto investments, especially Bitcoin BTC ($21,268).
“I have recently returned to the crypto market. Whenever Bitcoin falls below $17,000, I add to our position there.
“Crypto is very interesting because we are finally starting to see the gatekeeper working and I think that at the end that is a good thing,” he added.
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