Famous billionaire Kevin O’Leary talks about having billions of dollars in institutional capital to enter the non-alterable token (NFT) industry after overcoming three big challenges. Famous Shark Tank investor Kevin O’Leary says that blue-chip investors are waiting on the sidelines with billions of dollars that could enter the immutable token (NFT) space, a booming altcoin industry lately.
This altcoin sector can receive huge investments
The famous billionaire tells his 556,000 subscribers in a new video that he believes in NFTs excessively, but states that there are three major issues preventing institutions related to this emerging crypto industry from making a breakthrough. According to renowned investor O’Leary, the biggest challenge involves compliance issues. The billionaire talks about the issue: He says there are billions and billions of dollars of institutional capital willing to go to NFTs, but the compliance infrastructure has not yet been established to do so. Here’s how the billionaire talks about the subject:
For example, when you buy a stock or bond in a pension plan for a university in Geneva, they can immediately see how much you have put in the compliance department, whether you are using leverage, the position will be reported at the end. This information is available to auditors at any time, and regulators have a report that they issue every quarter, every month, every week, or every day, depending on your geography. Nothing like this in crypto. You have to do this manually yourself. This makes regulators very nervous.
Are NFTs securities?
cryptocoin.com Another challenge is to determine whether NFTs count as securities and therefore are subject to regulation, says the businessman, whose views we have previously covered. “When an NFT and a smart contract hold a royalty associated with a transfer of ownership, it distributes capital, and this is often interpreted as a security. It is no different from an interest-paying bond or a dividend-paying stock. However, we haven’t made a decision on this yet,” he said. O’Leary said he was also concerned about the amount of fraud going on in the NFT space and concluded that wallet security improvements are critical.
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