Ackman’s stance on cryptocurrencies comes as the majority of the community strives to reestablish faith in the sector in the wake of the FTX scandal.
Bill Ackman remains positive on cryptocurrencies despite the recent collapse of the FTX bitcoin exchange and market volatility.
In a Nov. 20 Twitter thread, the CEO and founder of hedge fund management company Pershing Square Capital Management said that despite recent setbacks, he thinks that “crypto is here to stay,” but there is a need to strengthen oversight and eliminate “fraudulent individuals” from the market.
Bill Ackman is an American billionaire investor who has lately advocated for the elimination of regulatory hurdles and the relaxation of laws in New York in order to make the city a cryptocurrency centre. Additionally, he is a direct investor in many bitcoin initiatives.
However, Ackman said that similar to the introduction of the telephone and the Internet, the fraud-facilitating capabilities of each new technology grow with time.
“Pump-and-dump scams are a serious issue in the cryptocurrency industry because of the ease with which dishonest promoters may issue tokens for that purpose. It is possible that the great majority of crypto currencies are used for fraudulent objectives as opposed to the establishment of legal firms.”
According to Ackman these “fraudulent actors” may be eliminated with the correct scrutiny from industry leaders.