Crypto billionaire Sam Bankman-Fried discusses why dogecoin should be named asset of the year – and how its rise reflects the meme-stock trend

Screenshot 2021 06 04 at 12.57.45
Sam Bankman-Fried, founder and CEO of crypto exchange FTX.

Sam Bankman-Fried, the 29-year-old billionaire founder of crypto exchange FTX, said in a recent podcast that dogecoin should be named asset of the year, given the massive fanbase the meme token has managed to rack up.

“If there is an asset of the year for 2020 and 2021, it would be dogecoin,” he said in an episode of The Jax Jones and Martin Warner Show podcast. “That is the asset that accurately reflects our current economic climate. That is the asset that we have all chosen, that we all deserve – for better or for worse.”

Dogecoin was last trading 12% lower at 22 cents on Monday, amid a broad cryptocurrency sell-off triggered by China’s intensification of its crackdown on crypto mining and services. The digital token is still up around 4,700% so far this year.

Bankman-Fried said he wasn’t attempting to either endorse or reject dogecoin, or even take a position on it. “I’m just saying everything we as a society have decided over the last year has been dragging us closer and closer to the dogecoin financial standard.”

The meme token has seen its popularity explode this year after influencers including Elon Musk and Mark Cuban drove attention and support its way via tweets. Dogecoin investors bet on being able to cash out by selling to the next person looking to invest, so they can make a quick buck, and those comments drew a lot of new entrants to the market.

Cardano creator and ethereum cofounder Charles Hoskinson is among those who have warned that this situation is a bubble waiting to burst and that investors will be left holding the bag if they don’t exit in time.

Digging into why and when retail investors turned their attention to dogecoin, Bankman-Fried said celebrity endorsements are fundamental to the token’s future growth.

“Elon is a powerful piece of this – he is actually the most influential man in the world when it comes to financial assets right now,” he said. “Everyone kind of knew he’d choose Dogecoin. And we chose Elon. We signed up for this. We signed up for some amount of self-aware mockery, for some amount of a sense of humour, and for some amount of challenging norms.”

He agreed that dogecoin’s value is not based in its underlying technology, and suggested people don’t invest in it for the product or its roadmap. “They buy it because it is just a funny looking dog and the fact that it is pronounced ‘doge’. That’s why they bought it,” he said.

Bankman-Fried also discussed GameStop stock’s sudden price spike, and decribed how day-traders are deciding what the value of such assets should be.

“The only surprising thing was that it wasn’t a cryptocurrency, because that pattern happens all the time in crypto -it’s not unusual,” he said.

He went on to talk about how Reddit traders banded together to ignite the video-game retailer’s trading momentum, and how that connected with dogecoin trading.

“The moment that Robinhood banned buying of GameStop, hundreds of millions of dollars flowed instantly into dogecoin. Directly out of GameStop into dogecoin. Because those are the same types of assets. People see them very similarly,” Bankman-Fried said, adding that millions of day-traders en masse can decide the valuation of an asset after discussing it on social media.

Read More: The CEO of the world’s oldest active crypto exchange breaks down why going public is ‘a dangerous distraction’ – and shares the 3 types of cryptocurrencies with real-world use cases that he’s excited about

Read the original article on Business Insider

A teen crypto influencer who started by investing her pocket money into bitcoin says Gen Z could make crypto go mainstream – once they understand its benefits

Crypto Influencer Miss Teen Crypto
  • Miss Teen Crypto says Gen Z could push bitcoin mainstream once they understand and adopt it.
  • She began investing in crypto at 16 with her pocket money, after her dad introduced her to bitcoin.
  • Digital-native teens could easily dive into NFTs, once they understand the financial side, she said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Miss Teen Crypto, a cryptocurrency influencer who started investing her pocket money into bitcoin when she was 16, told Insider she believes Gen Z could be the catalyst to take crypto and NFTs into the mainstream, if someone would just explain the benefits and how they work.

The 18-year-old, who has tens of thousands of followers across the major social-media platforms, believes her digital-native generation could easily understand the digital side of crypto, but not the financial side – but more education could fix that.

“I think that Gen Z – we’re a little behind in terms of the financial aspect, but we’re not behind in terms of technology,” she told Insider in an interview.

“We’ve been on Snapchat since it came out, we’ve been on the internet our whole lives. So we know the concepts of digital property, we understand how to use this technology,” she said. “We just have to be educated on why we should and how we could.”

Her first investment, at 16, was around $200 saved up from her pocket money and birthday gifts. Her dad had got involved with bitcoin and crypto five years before that, when she was 13 – but at that time, she paid no attention to his passion.

“I was just tuning out. I was like, ‘This is boring, I don’t want to hear about it,'” she said. “But then a few years after, he actually showed me how a bitcoin transaction worked.”

When the New Yorker saw that bitcoin transactions were easily carried out on her phone, she recognised bitcoin’s potential, both in terms of investing and changing the world, she explained.

The crypto HODLer – who grew up Randi Hipper but is known by @MissTeenCrypto on Twitter, her podcast and Instagram – has seen others have the same experience when she has talked to them about crypto and bitcoin. Her high-school peers knew as little as her teachers about the assets, and 95% of the people she has talked to at Times Square have never heard of them.

Non-fungible tokens, or NFTs, are a great way for young people to realise crypto’s potential, the influencer believes. These are unique digital assets – such as image, video or audio files – that are built and stored on blockchain technology. As they cannot be duplicated, so they can be Collectable and hold value.

The key advantages, she said, are that anything can be turned into an NFT – from digital art, to music, to “your high school diploma” – and everything is documented on blockchain. There are also no age limits to creating them.

“Especially with Gen Z, we could take the space and run with it,” the crypto fan said. “It’s just amazing. I think NFTs could be everything,” she added.

All that is needed for a wider adoption of crypto assets is more education, she argues. That could spark a digital revolution that goes beyond finance, she said, bringing changes to not just the financial system, but also to the way people interact and make transactions work.

“We have to be able to reach more people and educate more people, which is what my mission is,”she said. “I’m trying to use social media, and I’m trying to make more educational content just to reach more Gen Z – because it really is the education that matters.”

Read the original article on Business Insider

Billionaire banker Ken Moelis says the bitcoin craze is like the gold rush of 1848 – and the meme stock frenzy is down to its entertainment value

Ken Moelis
CEO of Moelis & Co, Ken Moelis.

  • Billionaire banker Ken Moelis compared the cryptocurrency obsession to the gold rush of 1848.
  • His investment bank is focused on having crypto expertise before diving into the space, he said.
  • Most of the meme-stock frenzy is just for fun, and those ending up with losses will accept it, he said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Investment banker Ken Moelis likened the bitcoin craze to the California gold rush at a Bloomberg summit this week, and said he’s eyeing the cryptocurrency space for business opportunities, just as Levi Strauss did for miners in 1848.

Moelis, who founded the boutique investment bank Moelis & Co, said he was personally open to investing in crypto, but his firm is more focused on having expertise before diving into it. “It’s a big market, there’s a lot of capital in there, there’s a lot of projects,” he said, adding that he remains cautious of taking his firm into the space.

More-traditional banks have until recently taken a watchful stance toward bitcoin and other mainstream cryptocurrencies. But an explosion of adoption by major banks such as Goldman Sachs and of new deals in the area has solidified the establishment of a whole new asset class in the financial world.

“It’s like the gold rush of 1848. A lot of people didn’t know if there was gold in the ground, but Levi’s made a business selling jeans and Wells Fargo made a banking business,” Moelis said at the summit. “I believe our business is selling the picks and the shovels, so we have to know what people want – what picks and what shovels they need, what tools they need to be successful.”

In 1848, the discovery of gold flakes in a California stream unleashed the largest migration in the US by would-be miners attracted by the prospect of massive wealth. Likewise, the huge gains logged by bitcoin since its inception has attracted an ever-growing legion of fans to cryptocurrencies, with some previous major detractors like Howard Marks changing their outlook. In March, online brokerage Etoro reported it had added over 5 million new bitcoin-focused users in 2020, and as of 4 January, it had 61% more bitcoin holders on its platform year-on-year.

Moelis also shared what he thinks about the meme-stock frenzy, which has seen retail investors band together on social platforms to buy and hold targeted stocks such as GameStop, often with the aim of pitting themselves against Wall Street. He said his own children are actively involved in the trend, and that they regularly update him on certain stocks.

“They’re just having fun – I think 70 to 80% of this is fun,” he said. “When you go to a casino, the most boisterous, loudest craps table is always the one where everyone runs over because someone has made their point, they’ve predicted something.”

But he said there will be some who bet beyond what they can afford. “At every craps table, 70 to 80% of the people, they know they’re having fun, and know they’re going to lose their money, and accept it. There is somebody who’s going to lose their mortgage.”

Read More: A veteran options trader breaks down 3 potential drivers of AMC’s 2,500% surge this year – and shares how long the retail-fueled rally might last

Read the original article on Business Insider

Bitcoin slides 5% after Elon Musk hints at a potential split with the popular cryptocurrency in a tweet with a broken-heart emoji

elon musk bernie sanders space tax

Bitcoin slipped 5% on Friday after Elon Musk signaled a potential breakup with the digital asset by posting a broken-heart emoji and a reference to a popular “Linkin Park” song.

The token was just recovering from a broader cryptocurrency crash last month in the wake of increased regulatory scrutiny from China. After appearing to be in calm waters, the coin fell 5% to around $36,600 on Friday once Musk tweeted “#Bitcoin” along with a broken-heart and an image of a couple contemplating a break-up. His tweet came three weeks after Tesla halted payments in the digital asset.

Screenshot 2021 06 04 at 08.16.34

He then tweeted a comic strip thread of a couple discussing how they’re yearning for each other. Musk also replied “nice” to a GIF image of meme-based cryptocurrency dogecoin posted by crypto exchange Coinbase.

It is unclear what Musk meant to convey, if anything.

The billionaire’s tweets have often seemed to influence the cryptocurrency’s price movement as he has been one of the most prolific backers of its decentralized technology. In recent days, however, Musk has taken a more controversial stance by suspending Tesla payments made in the asset, citing issues related to its massive energy consumption.

Crypto boss Justin Sun – a protégé of Alibaba founder Jack Ma – replied on the same thread, saying he would buy all the bitcoin that Musk sells.

Screenshot 2021 06 04 at 08.39.25

The Tesla boss has previously said his EV-maker, which is the second-largest corporate holder of bitcoin, has not sold any of its holdings. He also claims he is holding on to the ever-volatile dogecoin, but he’s never said how much of the meme crypto he actually owns.

Musk’s tweets recently caused another market movement outside the crypto world. His post about the iconic kid’s favorite “Baby Shark” sent shares in the song’s investor up by 10% earlier this week.

Tesla stock is down by more than a third since it announced a $1.5 billion bitcoin bet in February. Bitcoin has fallen more than 40% since its April record high of near $65,000. Dogecoin last traded 13% lower at 39 cents.

Read More: 2 crypto experts unpack how to make big money investing widely in NFT infrastructure, instead of losing out in the volatile digital art market

Read the original article on Business Insider

Ethereum hits its highest ever crypto-market share as investors load up following dramatic May selloff

GettyImages 974630854
Ethereum represented more than a quarter of crypto assets under management in late May.

  • Ethereum’s market share rose to its highest on record during the last week of May, CoinShares said Tuesday.
  • Ethereum’s market share of nearly 27% was boosted as investors took advantage of a drop in price during May’s crypto market crash.
  • Bitcoin investment logged outflows of $4 million last week but inflows remain positive for 2021.
  • See more stories on Insider’s business page.

Ethereum’s market share leaped to its highest point on record during the last week of May as investors took advantage of a price drop.

Ethereum’s market share rose to nearly 27%, becoming the top investment product among crypto assets last week, according to figures from CoinShares released Tuesday. Investors snapped up $46.8 million in ether, the token representing the world’s most utilized blockchain.

Ethereum prices and those of other cryptocurrencies were throttled lower as part of a massive selloff in the space, fronted by a plunge in bitcoin below $32,000 as the crypto market faced regulatory threats. Officials in China again said they would crack down on mining and trading of bitcoin, citing environmental and social concerns, and the US Treasury outlined plans to have cryptocurrency transfers of at least $10,000 reported to the Internal Revenue Service.

But that “digital price weakness” also propelled investors to push $74 million in the market as trading wrapped up in May, CoinShares said.

Ether’s price hit its lowest point of the month on May 23, sliding by 24% to $1,737.47 from the previous session. The cryptocurrency had already been under pressure the week before as it was knocked down from above $4,000.

“The price correction had a minor impact on investment flows the previous week, but this looks to have recovered, with all product providers seeing inflows,” said CoinShares about ethereum. Ethereum eventually trimmed May’s price decline to roughly 2%.

Outflows remained focused on bitcoin investment products last week, leaving the world’s most traded crypto to log a decline of $4 million. However, inflows into bitcoin investment products were still positive for 2021, at $4.4 billion.

Inflows across crypto assets reached $298.4 million in May, putting total assets under management at $45.1 billion, the analytics firm said.

Read the original article on Business Insider

Palestinian militant group Hamas has seen a spike in crypto donations to fund its operations since its renewed armed conflict with Israel, report says

GettyImages 1233193877
Hamas staged an anti-Israel rally in the northern Gaza Strip, a parade with weapons in the streets of Gaza city more than a week after a ceasefire between Israel and Palestine.

Hamas said it has seen a rise in cryptocurrency donations since violent clashes with Israel broke out in May, the Wall Street Journal reported on Wednesday, citing a senior official of the militant group.

The escalation in armed conflict began on May 7, when Israeli police stormed the Islamic holy site al-Aqsa Mosque during the period of Ramadan and injured over 200 people. Palestine’s Islamist group retaliated by firing rockets into Israel from Gaza, after which Israel struck back with its own airstrikes at Gaza.

Both sides eventually agreed to a ceasefire on May 20, after 11 days of the bloodiest fighting seen in the region in seven years.

The conflict drew widespread international attention, not just to the chaos of the situation, but also to websites run by the group’s armed wing, the Izz ad-Din al-Qassam Brigades, WSJ said. Heightened interest led to increased donations that are facilitating its operations.

“There was definitely a spike” in bitcoin donations, the Hamas official told the Journal. “Some of the money gets used for military purposes to defend the basic rights of the Palestinians.”

gaza palestine celebrations
Palestinians dance as they wave green Hamas and their national flags while celebrating the cease-fire agreement between Israel and Hamas in Gaza City.

It isn’t clear when Hamas began receiving crypto donations. But its designation as a terrorist group by Israel, the United States, the European Union and Britain means that it had to turn away from the global financial system to rely on other complex networks for funding.

The group has especially benefited from the anonymity of crypto transactions, WSJ said. Last year, US federal authorities seized $1 million in cryptocurrencies tied to the group’s armed wing. A previous investigation by the Journal found al-Qassam converted most of its bitcoin into cash, or gift cards, aided by two Turkish intermediaries.

The Hamas official didn’t mention the amount of cryptocurrency it had received, but said overall revenue has been rising. It has also been collecting other forms of donations from supporters.

In one instance, a branch of the Iranian armed forces sent more than $200 million to the group between 2015 and 2019, the WSJ said, citing data from the US Treasury. Iran does not recognize the legitimacy of Israel as a state. Its supreme leader, Ali Khamenei, called the predominantly-Jewish state “not a country, but a terrorist base” last month.

For the Palestinian organization, cryptocurrencies offer an easier method of making sure transactions go undetected as they are untraceable.

“Our fundraising strategies keep on evolving as more restrictions are being placed on us,” the Hamas representative said.

Read More: Financial researcher Nik Bhatia explains why asset managers with a growth focus could be violating their fiduciary duty if they don’t consider bitcoin – and compares the crypto to Amazon’s stock 20 years ago

Read the original article on Business Insider

India’s central bank confirms cryptocurrencies aren’t banned – and says its 2018 order barring banks from crypto transactions is no longer valid

2021 03 23T153223Z_1_LYNXMPEH2M171_RTROPTP_4_FIDELITY CRYPTOCURRENCY.JPG
  • India’s central bank confirmed on Monday that cryptocurrencies and exchanges are not banned.
  • A three-year-old circular that barred banks from crypto transactions is no longer valid, the RBI said.
  • “The new RBI circular clearly confirms the right to do business with crypto firms,” crypto exchange ZebPay’s co-CEO said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

India’s central bank clarified on Monday that an old order forbidding financial institutions from supporting cryptocurrency transactions had been struck down by the country’s highest court in 2020, allowing investors to breathe a sigh of relief.

In a new note, the regulator said banks should not cite its 2018 circular as a reason to disallow trades in digital currencies as it had been “set aside by the Hon’ble Supreme Court” last year.

“The circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from,” the note stated.

The latest order, addressed to all commercial and co-operative banks, followed local media reports that some financial firms, including the country’s largest banks, had advised investors against dealing in digital currencies.

“It’s amazing to see @RBI clarifying & helping solve uncertainty for crypto in India,” Nischal Shetty, founder and CEO of Indian crypto exchange founder Waz irX, said in a tweet. “There are over 1.5 crore Indians in crypto. This news has brought joy and confidence to everyone in the sector.”

Read More: A senior crypto trader at a $500 million digital asset manager shares his favorite trading strategies to generate ‘riskless profits’ – and the 3 sectors of the nascent market that he is most bullish on

Still, the RBI order directs institutions to continue to perform due diligence processes before providing services.

“This is positive news for the entire crypto industry – businesses, stakeholders, and investors,” Avinash Shekhar, co-CEO of crypto exchange ZebPay, told Insider. “Investing in crypto has always been 100% legal in India and the new RBI circular clearly confirms the right to do business with crypto firms.”

He added that the RBI’s communication about due diligence is a welcome move that could strengthen the relationship with banking and payment gateway partners, and make crypto investments accessible to more Indian investors.

The crypto industry in India still awaits further direction from the government in the form of a new law that reportedly address criminal possession, issuance, and crypto mining.

Bitcoin was little changed on Tuesday, trading 1% higher around $36,196. The digital token is up 25% so far this year.

Read the original article on Business Insider

Tesla ditched bitcoin payments but it’s still the 2nd-biggest corporate holder. 6 experts break down why its holding poses major risks to investors.

Tesla CEO Elon Musk with a hardhat.JPG
Tesla CEO, Elon Musk.

  • Tesla is the second-largest bitcoin owner despite its concerns over the climate impact from the mining process.
  • Digital assets, including established ones like bitcoin, are highly volatile over the short-term.
  • Six experts told Insider why bitcoin investments expose major risks to corporate investors.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Tesla holds 43,200 bitcoins, currently worth about $1.52 billion, according to bitcointreasuries.org. This makes the electric vehicle maker the second-largest corporate bitcoin owner after technology firm MicroStrategy.

The cryptocurrency market was spooked in recent weeks by a combination of Elon Musk suspending bitcoin payments, China banning financial institutions from maintaining crypto practices, and Japan’s central bank governor warning about its volatility.

Tesla’s announcement in February that it had poured $1.5 billion into the digital asset excited investors initially, but the recent volatility in bitcoin highlights risks to shareholders. Some question whether Tesla’s purchase was a good use of corporate cash.

Six experts told Insider why companies, including Tesla, can’t rely on cryptocurrencies as sound corporate cash investments.

Risk to investor protection duty

“Companies that hold large amounts of their cash in bitcoin are breaching their fiduciary duties to shareholders, plain and simple. If an investor wants exposure to bitcoin, he or she should buy bitcoin. Corporate cash should be used for funding growth and/or returning capital to shareholders. How can you plan to fund those initiatives if your ‘cash’ (bitcoin holdings) is fluctuating as much as 10% in a day?” – Marc Lichtenfeld, chief income strategist at The Oxford Club

“While some investment strategies recommend a small percentage (2%-5%) of the total portfolio for investment purposes, we are a long way from using cryptos for transaction purposes, and so is not a recommended Treasury management strategy. It is possible that in the future cryptos are accepted as a trade currency similar to fiat and that will reduce ‘volatility’ and enable hedging vs fiat currency for better cash management.” – Sankar Krishnan, executive vice president, Capital Markets and Banking at Capgemini

Read More: A ‘dogecoin millionaire’ explains why the recent drop does not shake his bullishness in the meme coin – and shares his advice for new buyers

‘All the downside, none of the upside’

“Bitcoin is treated as an intangible asset, which means that the declines in value of bitcoin have to be written down and taken as a hit to earnings. Unfortunately for these companies, increases in the value of bitcoin do not flow back into earnings. So they get all the downside, and none of the upside.” – Jerry Klein, managing director at investment firm Treasury Partners

“A great corporate treasurer understands that when you have one of the world’s highest returning assets which is also showing high volatility, you need to analyze how to fit it in. Throwing out the baby with the bathwater never makes sense.” – Matthew Le Merle, managing partner of Blockchain Coinvestors

“Bitcoin and other cryptocurrencies are not legal tender. They are not issued by central banks, and as such their volatility is easily susceptible to speculation and pricing manipulation.” – Felix Shipkevich, special professor of law at Hofstra University

“The crypto market might be here to stay, but my suspicion is like the metamorphosis of a caterpillar to a butterfly, the stability of the crypto market is not here yet. Until that happens, a company investing and taking a long-term position in an unregulated market instrument like cryptocurrencies can not receive my endorsement.” – Sam Onigbanjo, a founding partner of the Capital Markets Academy, London

Read the original article on Business Insider

Cathie Wood says Elon Musk will eventually prove positive for bitcoin – and predicts central banks will begin adding crypto to their balance sheets

IMG_1821.JPG
Cathie Wood is the founder, CEO, and CIO of ARK Investment Management. Elon Musk is the SpaceX owner and Tesla CEO.

  • Cathie Wood said Elon Musk will prove to be more positive for bitcoin in the long-term.
  • “He has encouraged a lot more conversation, a lot more analytical thinking,” she said at Consensus 2021.
  • She predicted central banks will begin to add cryptocurrencies to their balance sheets.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Elon Musk’s role in highlighting bitcoin’s environmental concerns contributed to the recent cryptocurrency crash, but his influence over the digital token will be more constructive going forward, according to Cathie Wood.

Bitcoin, which has lost about 50% of its value over the last few weeks, was last trading around $37,000 on Friday. The highly volatile asset class steadily has crept into the mainstream over the past year, but lost momentum, as debate over its energy-intensive mining process has emerged.

“It was precipitated by the ESG [environmental, social and governance] movement and this notion, which was exacerbated by Elon Musk, that there are some real environmental problems with the mining of bitcoin,” Wood said at CoinDesk’s Consensus 2021 conference this week. “A lot of institutional buying went on pause.”

Wood said she guessed Tesla was cautioned by its ESG-conscious investors like BlackRock, whose CEO Larry Fink is especially committed to putting climate change at the center of investing strategy.

But the star investor is optimistic about bitcoin’s long-term potential and expects Musk will be a positive figurehead for its environmental reputation. “He has encouraged a lot more conversation, a lot more analytical thinking. And I do believe he’s going to become a part of the process,” she said.

The billionaire Tesla boss recently suggested top miners should prove they’re using green energy to mitigate its negative image.

Read More: A ‘dogecoin millionaire’ explains why the recent drop does not shake his bullishness in the meme coin – and shares his advice for new buyers

Wood also predicted some central banks could begin adding cryptocurrencies to their balance sheets as their own currencies face the risk of devaluation.

“I wouldn’t be surprised if some of these emerging-market central banks start accumulating bitcoin and other (crypto) currencies, because they know their currencies are going down, and they will be under attack as reserves go down,” she said. “Maybe they’ll have a balance with bitcoin and other crypto-assets.”

Regulators may also adopt a more friendly stance toward the space out of fear of missing out on the innovation the sector brings with it, she said.

Wood’s investment firm Ark Invest published a report last month that suggested bitcoin mining encourages the adoption of renewable energy and could enable cleaner energy solutions.

Read the original article on Business Insider

Former bitcoin skeptic Carl Icahn says he may pour more than $1 billion into cryptocurrencies – but predicts many digital assets won’t survive

carl icahn billionaire miami
Activist investor Carl Icahn.

  • Billionaire investor Carl Icahn said he’s looking to get into cryptocurrencies “in a big way.”
  • He told Bloomberg he may invest more than $1 billion into digital assets.
  • He thinks some cryptocurrencies may get flushed out as they don’t boast any safety value.
  • See more stories on Insider’s business page.

Billionaire investor Carl Icahn told Bloomberg on Wednesday that he was looking to get involved in the cryptocurrency space, and may invest more than $1 billion into digital assets.

“I mean a big way for us would be a billion dollars, a billion-and-a-half dollars,” he said in an interview. “I’m not going to say exactly.”

Icahn has changed his tune on cryptocurrencies, after calling bitcoin and other similar assets “ridiculous” only three years ago. Telling CNBC in 2018 that he “wouldn’t touch that stuff,” he said his dislike perhaps stemmed from not understanding them.

Icahn, who currently has a net worth of $22 billion, said he hasn’t yet bought any crypto, but he’s exploring where the opportunities lie within the sector as a whole. He acknowledged cryptocurrencies are gaining mainstream acceptance as a consequence of rising inflation.

The activist investor said many cryptocurrencies in circulation right now may not survive, as there needs to be some form of safety value associated with them. “I don’t think there will be a lot of good survivors that are out there trading today,” he said.

Read More: ‘The best time to buy bitcoin is always now’: The founder of the world’s longest-running crypto exchange told us his best advice for navigating the digital currency’s wild volatility

While questioning the intrinsic value of the dollar, he said skepticism over the value of cryptocurrencies is a “little wrong-headed,” and the only reason the dollar is valuable is “because you can use it to pay taxes.”

According to him, the market is currently in a state of excess due to a combination of factors like an overflow of money in the economy, so-called meme stocks that are “ridiculously-priced,” and certain strategies presented by money managers.

“I don’t think Reddit and Robinhood and those guys are necessarily bad, I think they do serve a purpose,” he said. “Money is funneling back into companies. Some of these companies might be okay, but a number of them, the risk-reward is absurd.”

Icahn isn’t the only high-profile crypto skeptic to have changed his mind. Legendary investor Howard Marks said earlier this year he was being more open-minded towards bitcoin, and that his son Andrew “thankfully” owns a meaningful amount for the family.

Read the original article on Business Insider