Shark Tank investor Kevin O’Leary is a well-known figure in the crypto sector. He is an active investor and market guru with a long history in the digital asset space. Recently, he spoke with Insider about his take on the crypto sector in light of recent regulatory action. According to O’Leary, he was able to understand the frustration policymakers had in December, following the costly FTX implosion. Based on their conversations, it seems that the US government has “released the hounds” to crack down on cryptos.
The Securities and Exchange Commission (SEC) have been busy recently, targeting Coinbase, Binance, and several celebrities. Although they remain “neutral” in terms of the technology, they have taken a stance when it comes to investor protection. Given this pushback, O’Leary has made the forecast that many of the crypto founders in the industry are only a few months away from being pushed out. This is due to the fact that the “rockstar” members of the space have never had to handle compliance costs or rules.
WonderFi, a platform backed by O’Leary, has been used to store his digital assets since November. He moved his investments to Canada, in order to avoid a similar fate to that of FTX.
As U.S. stock futures rise early Tuesday and global inflation is impacted by a surprise OPEC+ production cut, people are keeping a watchful eye on the U.S. monthly Job Openings and Labor Turnover Survey. Companies like Credit Suisse, Nokia, and the Bank of Nova Scotia have reported and analysts have noted the potential of a bear market despite the Nasdaq’s success. Furthermore, Morgan Stanley’s stock strategist warned of a potential end to the tech rally.
It seems investors may have to rely on the select stocks with market-beating upside and dividend growth listed by UBS. In addition to this, the sell-side indicator from Bank of America suggests that the S&P 500 will jump by 16% in the next 12 months.
Tesla stands as another potential source of bullishness in the sector. Price cuts for the Model Y and Model 3 have worked to increase demand, according to Wedbush analys Dan Ives.
Overall, it is important for investors to focus on stocks which maintain dividend payments, even during economic downturns. These would be the stocks who one should seek out and invest in as the regulatory pressures of the crypto industry continue to build.
Happy Tuesday Opening Bell crew. I’m Phil Rosen — it’s been a moment since we’ve checked in on the cryptocurrency sector.