Shark Tank star Kevin O’Learymade a remarkable comment after the major correction at the beginning of this month.
In a new interview with Stansberry Research, O’Leary said: TerraUSD (UST) He considers the collapse of the algorithmic stablecoin and its associated Terra (LUNA) to be a painful part of a growing industry.
“I think all these events are an important part of a maturation process for the crypto market. There are two basic baskets of crypto projects: one, highly speculative tokens, which we can say with certainty that UST and LUNA fit in because they have been dramatically repriced.
After the events, people will now be more careful about stablecoins and understand that they need an asset support behind them to maintain this stability. I think UST is no longer in a position to return to its previous price.”
O’Leary later stated that the US Dollar Coin (USDC), owned by financial services firm Circle, did not lose its stable value like other so-called stablecoins during the recent market crash.
“We found that USDC was unaffected during these corrections. In fact, in this era of mass correction of other algorithmic or other quantitative or speculative stablecoins that have really been crushed, USDC issuing company Circle has managed to raise $200 million from Fidelity and $200 million from Blackrock.
This is unprecedented for the company in terms of equity.
This signals that such stablecoins are favored by institutional investors compared to others that appear to be a retail product.”
O’Leary also NFT Stating that the assets in the world have also decreased, he shared his comments by renewing his belief in crypto assets in the long run. However, at this stage, only time will tell which assets will survive and which will collapse.
According to the commentator, cryptoassets will be the 12th most valuable industry in the economy in the next decade, but some of the assets we value today will not.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.