Paul Krake is an ex-macro hedge fund manager that doesn’t think much of crypto. In fact, he’s downright skeptical of the space.
Paul Krake Doesn’t Think Much of Crypto
In a recent interview, Krake said he’s convinced many digital currencies are going to vanish into thin air in the coming years. He thinks a lot of them are fraudulent and will not stand the test of time. He stated:
There are 19,000 [crypto] coins in the world. 18,980 of them are going under… Crypto is BS, complete BS. I’m the ultimate skeptic on crypto.
He also stated that there are too many criminal acts occurring in the digital currency space. He is particularly unhappy with people like Elon Musk and Michael Saylor of MicroStrategy fame and says their attitudes of plunking everything down on BTC or other assets is downright irresponsible. He said:
I’ve always been a skeptic on crypto. I think the behavior of people like Michael Saylor and Elon Musk, those who advocated that young people max out their credit cards to buy cryptocurrency that couldn’t go down, to buy stable coins with 20 percent yield even though they didn’t know where the yield came from, would be criminal in any other market.
Krake also believes many coins won’t survive simply because future regulation will be extremely tough. He says regulators are really cracking down on digital assets and assorted projects, and he is confident these rules will prove too much for the industry to handle:
Let’s be clear, here. The fraud that goes on in this space is unacceptable in equity markets, credit markets etc. The only reason it exists is because governments are behind the curve, and they haven’t regulated it properly. I personally think that the coins will get regulated out of existence.
Despite his dislike of many coins, he hinted that he’s a fan of blockchain technology, and said that the technology and the coins need to be fully separated in the future. He commented that the coins are bringing the technology down, and so long as the two remain connected, nobody will ever give blockchain the attention it deserves. He stated:
We’ve got to separate blockchain technology from the coins. You don’t need tokens to implement blockchain strategies. The tokens are the pariah on the back of the innovation.
Did Too Many People Listen to the Hype?
He also said he’s not worried about the current crypto crash given that all it means is that rich people are getting “less rich.” He stated:
We’re very lucky that there isn’t a lot of systemic risk around the crypto crash because it’s a lot of rich people getting less rich, but there are also a lot of young people who have lost everything listening to the likes of Michael Saylor.
