- Kevin O’Leary predicts most altcoins will decline due to regulatory pressures.
- He sees Bitcoin and Ethereum as the main assets for institutions.
- Lack of liquidity and use case could doom many altcoins.
Investor Kevin O’Leary stated in a recent interview that most altcoins are useless and will eventually become worthless, emphasizing Bitcoin and Ethereum as the primary viable cryptocurrencies.
O’Leary’s comments have sparked discussions regarding potential impacts on the cryptocurrency market, influencing institutional investment decisions and underlining regulatory concerns about altcoin sustainability.
Kevin O’Leary, a prominent investor and “Shark Tank” personality, recently emphasized his belief that “most altcoins are useless”. He asserts that regulatory frameworks will render most tokens non-viable, leaving only Bitcoin and Ethereum as practical options for institutional investors.
O’Leary criticizes the crypto landscape, stating that the majority of 10,000 tokens lack trading volume and volatility. He recommends institutional focus on Bitcoin and Ethereum, noting their liquidity and compliance potential. Altcoins, in his view, lack sustainable prospects.
Impacts on the crypto market include a potential capital shift towards Bitcoin and Ethereum, with altcoin projects facing increased difficulty in securing funding. This could further concentrate investment and liquidity in major cryptocurrencies while sidelining smaller assets.
Institutions can capture the vast majority of crypto’s risk/return by holding only BTC and ETH.
The long-term market scenario remains fluid, with ongoing adaptations in crypto regulation. Depending on regulatory outcomes, Bitcoin and Ethereum could solidify their dominance, while decentralized finance innovations might still spark interest in new altcoin ventures.
Future regulatory frameworks will likely play a crucial role in shaping crypto investment landscapes. Historical patterns suggest a survival trend for major coins during market downturns, with Bitcoin and Ethereum maintaining their pivotal roles based on liquidity and institutional appeal.
