- Kevin O’Leary has expressed concerns about the possible bankruptcy of unregulated exchanges following the collapse of FTX.
- He cited the current massive outflows recorded by unregulated exchanges and other indices as factors behind his prediction.
- Despite potential bankruptcies, he insists he will continue doubling down on his BTC holdings.
The implosion of FTX has left negative footprints in the industry, but it has exposed several other projects running similar schemes in the wake of harsher scrutiny.
Shark Tank star Kevin O’Leary has predicted the end of many unregulated exchanges saying that they would collapse like FTX if regulation is not beefed up. Speaking at an interview on KITCO, he stated that post FTX, unregulated exchanges will fall like dominos.
“If you’re asking me if there’s going to be another meltdown to zero? Absolutely. One hundred percent it’ll happen, and it’ll keep happening over, and over and over again.”
At the moment, numerous unregulated digital asset exchanges are recording high daily volumes. Unregulated exchanges are exchanges that are not under the supervision of authorities and are not subject to regular audits.
O’Leary, who was a strong voice in support of FTX in the past, has now called for major audits to be carried out by exchanges if they deserve user assets.
“If you’re not willing to be audited, you don’t have an audit, you don’t want to be transparent, you don’t want to disclose ownership, why should institutional capital stay? Of course, it’s not going to,” he added.
He cited the ongoing massive outflows recorded by unregulated exchanges as an indication of what is to come in the near future if the status quo remains.
”Well, all of these exchanges, all the unregulated exchanges are having massive outflows right now. Smart money has got the joke. They saw what happened at FTX, and they’re not sitting around for an explanation.”
Kevin O’Leary still bullish on BTC
Despite losing millions in FTX coupled with failed attempts to save the exchange, O’Leary is still committed to buying more BTC with his “buy the dip strategy.”
“I have been going back into crypto markets lately. Any time Bitcoin drops below $17,000 I add to our positions there.”
O’Leary has long supported digital assets offering solutions to exchanges and web3 projects. The digital asset market, which has flipped green following a long bear run, could mean that O’Leary will not add more BTC to his portfolio soon as Bitcoin trades at $21,302 at press time.
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