Quick Summary:
⦁ Ken Griffin points out that investors are leaving crypto.
⦁ Investors leaving the speculative niche is a positive sign for the US economy.
Related: A new NFT initiative is announced by AC Milan
Citadel Securities’ founder Ken Griffin had an interview with CNBC this Wednesday. As of May 2022, Miami-based trading firm Citadel manages over $50 billion of investors in the US. The multinational hedge fund company was founded in 1990 by Ken Griffin. Ken is the heavyweight of Wall Street who spoke about Bitcoin, NFTs, and meme stocks in his last interview.
Ken Griffin’s concerns over crypto
Ken believes that crypto like Bitcoin and the meme stocks like dogecoin is the speculative investments. He includes the NFTs in the list of speculative bubbles that now has burst. The COVID-19 lockdown was the main reason for people pouring their money into blockchain-based assets.
It started when young traders purchased shares that had been previously shorted by hedge funds of video game retailer GameStop. Wall Street started to plunge and the concept of “meme stocks,” that garner followers via social media, became extremely popular. Griffin believes that the ‘bubble has burst’ as market is bleeding and this is ‘healthy’ for the US economy.
Why Griffin is Crypto averse?
Cryptocurrencies like Bitcoin were meant to offer a decentralized way of transferring and storing value. As people started using and buying Bitcoin, its prices started to grow. This inspired people to buy it not for the sake of its features and values but for its speculative nature. More coins started to pop up in the blockchain sphere which was hardly delivering any service but speculation.
This started to pump and dump the prices so that crypto became nefarious with its volatility. Meme coins even worsen the situation. The whales would pump them and then take away their profits – dumping down the entire marketcap.
NFTs – a buzzword does a great job of protecting the content online and incentivizing the creators. However, projects with counterfeit utilities started to cloud this space. Since NFTs are valued in cryptocurrencies, so even if their floor price does not drop, they’d still get devalued. Even the most popular NFT projects like Bored Ape weren’t immune to a bearish market.
Conclusion
Ken Griffin is a Wall Street preacher who manages the classic money. From his point of view, it seems that classic finance is threatened by decentralized finance, which is progressive. However, the concerns raised by him about the crypto sphere are genuine and should be addressed.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
