The entrepreneur compared cryptocurrency to the telephone and the internet in a series of tweets that he posted on Monday. He made the point that all three of these technologies had one thing in common: "Each technology improves on the next in terms of its ability to facilitate fraud," he said, referring to the difficulties that the telephone and the internet encountered in their formative years. Ackman, who was known for being an outspoken critic of cryptocurrencies in the past, recently voiced his support for crypto and suggested that the industry had the potential to develop into something very significant in the future.
"I was initially skeptical of crypto, 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 were not previously possible to create," he added. "I have come to believe that crypto can enable the formation of useful businesses and technologies that were not previously possible to create."
At the beginning of this month, the reality of FTX's collapse weighed heavily on investors, which caused the price of Bitcoin, Ethereum, and other cryptocurrencies to plummet to all-time lows. As a result of a contagion effect, cryptocurrency businesses such as Genesis Capital found themselves caught in a liquidity constraint and were forced to pause withdrawals while they waited for the market to calm down. As consumer confidence in centralized exchanges decreased, exchanges such as Binance and Crypto.com were also obliged to publish their reserve holdings.
According to Ackman, despite the fact that concerns over the FTX scandal were warranted, he was certain that the cryptographic technology had demonstrated its value outside the scope of such incidents. "The ability to issue a token to incentivise participants in a venture is a powerful lever in accessing a worldwide workforce to develop a project," he stated, adding that "The capacity to issue a token to encourage participants in a venture is a powerful lever." "When I first heard about the tokens, my first thought was that none of them had any sort of inherent worth, and that instead, they were just a contemporary iteration of the tulip fever craze, minus the aesthetic advantages. However, after looking at a number of fascinating cryptocurrency projects, I began to get how a token may accrue inherent value over the course of time.
The entrepreneur went on to say that unscrupulous promoters who created tokens to support pump-and-dump schemes were the root of the problem with cryptocurrencies like bitcoin and ethereum. It was also plausible, in his opinion, that the vast majority of crypto currencies being utilized for fraudulent reasons rather than for the development of legal firms.
He pointed out that the implementation of reasonable legislation and the strict execution of sound oversight was the way to solve these issues once and for all.
"Despite crypto's ability to facilitate fraud, with the benefit of sensible regulation and oversight, crypto technology's potential for beneficent societal impact may eventually compare with the impact that the telephone and internet have had on the economy and society," he said. "Although crypto has the ability to facilitate fraud, with the benefit of sensible regulation and oversight, crypto technology's potential for beneficent societal impact may eventually compare with the
