Ackman Does 180
“I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to believe that crypto can enable the formation of useful businesses and technologies that heretofore could not be created. The ability to issue a token to incentivize participants in a venture is a powerful lever in accessing a global workforce to advance a project.”
The billionaire does note that pump-and-dump scams are a problem in the crypto space and suggests that the vast majority of digital assets are being used for fraudulent purposes.
However, Ackman says the decentralized wireless network Helium (HNT) helped him realize that crypto could build intrinsic value.
“Helium created a global Wi-Fi network used by Lime and others to track devices globally as well as for other uses which benefit by access to global Wi-Fi networks.
Helium’s global network of 974,000 hotspots was crowd created by individuals who purchased and deployed Helium hotspots to mine HNT, its native token. Customers who wish to use the network must purchase HNT and burn it, ie, remove the ‘consumed’ HNT from its total supply of tokens.”
Ackman also clarifies that he wasn’t advocating for any particular crypto project.
“Rather, I am making the case that crypto can facilitate potentially useful and important businesses that heretofore could not exist. That said, the success of any individual project is a function of the ultimate demand for its products and/or services and the quality and the execution of its management.”
Ackman Bullish
Billionaire investor and hedge fund manager Bill Ackman says he remains bullish about cryptocurrencies, despite the recent collapse of the FTX cryptocurrency exchange and the market turmoil that has followed it.
In a Nov. 20 Twitter thread, the CEO and founder of hedge fund management firm Pershing Square Capital Management said he believes that “crypto is here to stay” despite recent challenges, though there’s a need to increase oversight and remove “fraudulent actors” in the space.
Bill Ackman is a billionaire American investor who most recently called for the removal of regulatory barriers and easing of regulations in New York in order to make the city a crypto hub. He is also a direct investor in a number of cryptocurrency projects.
“I think crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy,” he said.
However, Ackman said that like the invention of the telephone and the internet, the technology improves on the next in terms of its ability to facilitate fraud:
“The problem with crypto is that unethical promoters can create tokens simply to facilitate pump and dump schemes. It may in fact be that the vast majority of crypto coins are used for fraudulent purposes rather than for building legitimate businesses.”
That being said, Ackman said that with proper oversight from industry leaders, these “fraudulent actors” can be eliminated:
“All legitimate participants in the crypto ecosystem should therefore be highly incentivized to expose and eliminate fraudulent actors as they greatly increase the risk of regulatory intervention that will set back the positive potential impact of crypto for generations.”
The investor also said while he was initially a “crypto skeptic” he now sees it as having “the potential to greatly benefit society and grow the global economy,” he said, adding:
“I was initially a crypto skeptic [but] I have come to believe that crypto can enable the formation of useful businesses and technologies that [before now] could not be created.”
“The ability to issue a token to incentivize participants in a venture is a powerful lever in accessing a global workforce to advance a project,” he added.
Ackman added that “sensible regulation and oversight” would be crucial in progressing the technology forward.
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