Venture capitalist Kevin O’Leary believes that collapse of large and overleveraged crypto companies could be beneficial for the industry.
He believes that a large company going under signifies the start of the rebuilding process.
He said “..but it always gives you a good bottom when you get a large player, overlevered, that goes to zero. That always tends to be the beginning of the rebuilding process, so if you have to sacrifice someone who used too much leverage, and it’s always leverage, somebody’s overlevered.”
He further believes that the mistakes of the overlevered company teaches valuable lessons to the ones still afloat.
“It’ll be great for everybody else that survives because everybody will learn from that, and that’s what I like about a washout event.”
The Shark Tank investor is also not worried about the current bear market and is instead doubling down tokens, including bitcoin and ether, as well as various Web3 projects.
He currently holds 32 positions in the crypto space, including Solana, Polygon, FTX and WonderFi.
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