Kevin O’Leary, a celebrity investor known on ABC’s “Shark Tank” as “Mr. Wonderful,” has stated that he is buying cryptocurrency price drops and adding to his Bitcoin ($BTC) and Ethereum ($ETH) positions, as well as commenting on how to deal with the crypto market sell-off.
Speaking to Business Insider, O’Leary revealed he sees the crypto market downturn as a good thing and is doubling down on BTC, ETH, and other cryptocurrencies related to Web 3 projects, while acknowledging that not every single one of his investments will be a winning bet. O’Leary was quoted saying:
I’m not selling anything. Long term you just have to stomach it. You have to understand you’ll get volatility, and that some projects aren’t going to work.”
According to reports, the businessman’s cryptocurrency portfolio consists of 32 different positions, including Solana ($SOL) and Polygon ($MATIC). WonderFi, a cryptocurrency trading startup sponsored by O’Leary, was just listed on the Toronto Stock Exchange for the first time.
His digital asset allocation in his portfolio has dropped to 16 percent, down from 20 percent six months ago, due to the cryptocurrency bear market. O’Leary announced in April that he had also invested in Avalanche ($AVAX) and that his investments “included shares and FTX itself,” according to CryptoGlobe.
The entrepreneur believes that if there is greater regulatory clarity in the United States, cryptocurrency usage will skyrocket. As a result, he believes, allocations to the cryptocurrency market will expand. Institutions will first invest into BTC, he predicted, before moving on to other cryptoassets. Bitcoin’s value might soar to $300,000 as a result of these allocations, he added.
Terra’s recent demise, according to O’Leary, is the type of incident that teaches investors to be careful and can help digital assets grow even more because “no one is going to use their idea again.” “Everyone has been schooled that this isn’t the way to establish a stablecoin,” he stated.
According to him, Terra’s bankruptcy will have little impact on global financial markets:
It’s nothing, a rounding error in the context of a sovereign wealth. It’s bad for investors, but they’ve educated the market on what not to do. It’s a good thing.
According to Shark tank Kevin O’Leary
Smaller projects collapsing, according to O’Leary, help to strengthen the market, and breakdowns can help to forecast market bottoms, as a “defining capitulation” will signify the start of a rebound.
Despite the hype surrounding cryptocurrencies like Bitcoin, O’Leary has previously stated that because he serves sovereign wealth funds and pension plans, most institutions do not own a single coin and will not do so until “their compliance departments allow for the ESG mandates to be ‘check the box on that and of course be compliant on the asset class itself.”
Several companies, including MicroStrategy, Tesla, Block, Marathon Digital Holdings, and KPMG Canada have added the flagship cryptocurrency to their balance sheets, while a few investment funds have added BTC exposure through Grayscale’s Bitcoin Trust (GBTC).