The former CEO of MicroStrategy and “Bitcoin bull” Michael Saylor believes that the fallout from the fall of FTX could actually benefit Bitcoin and spark new growth in the crypto industry.
Saylor, who joined CNBC’s ‘Squawk on the Street’ show last week, said the market turmoil and volatility will benefit Bitcoin and a ‘handful’ of other cryptoassets as it wipes out thousands of useless cryptocurrencies.
“If progressive regulation is implemented, then you will no longer see 20,000 tokens circulating in the markets, you will see a handful, ten, but they will be properly registered tokens. The industry will grow much faster” , did he declare.
When addressing FTX’s collapse, Saylor claimed that the exchange’s failure can be attributed to a lack of transparency. According to Saylor, if a company holds cryptocurrency assets, they shouldn’t be “anyone else’s responsibility.”
Saylor also warned that recent developments around FTX will surely attract more regulatory scrutiny. However, he said if regulators react too aggressively in response to FTX’s implosion, it will hurt the industry.
“I think it will definitely strengthen regulatory measures. It will speed up their intervention. Regressive regulation, which prevents you from doing anything, is not desirable because it will contract the industry,” he said. he declares.
Saylor also noted that there is a need for US regulators to clearly outline how crypto businesses should proceed in terms of compliance. “Regulatory intervention lately has been negative, but the market is waiting for regulators to give us clarity on how to register a digital currency,” he added.
As we reported, FTX filed for Chapter 11 bankruptcy at the end of last week. US FTXthe US arm of the exchange, was also included in the proceedings, while Bankman-Fried had assured that the exchange operating on US soil was doing well.
Microstrategy now holds 130,000 BTC
Microstrategy has acquired and held bitcoin as a cash reserve since late 2020, investing millions of dollars in an effort to hedge against inflation and diversify its portfolio.
The firm currently holds approximately 130,000 BTC, worth over $2.1 billion at current rates. The average purchase price was $30,623 per bitcoin, for a total cost of $3.981 billion, according to data accumulated by Buy Bitcoin Worldwide. As a result, the company has currently lost over $1.8 billion on its investment.
Bitcoin’s poor performance also negatively impacted shares of MicroStrategy, which closed the last trading day down more than 19%. Shares of the company are down 69% year-to-date.
However, the recent price crash hasn’t affected Saylor’s optimism: “Bitcoin will be the winner because it’s a digital commodity and it’s the least controversial asset of all,” he said. he stated in the interview.
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