Former Microstrategy CEO and bitcoin bull Michael Sayler believes that the outcome of FTX could actually benefit bitcoin and lead to further growth in the crypto industry.
Sailer appeared on CNBC’s ‘Squawk on the Street’ last week, Told The turmoil and volatility in the market will benefit bitcoin and a “handful” of other coins as it will eliminate thousands of worthless cryptocurrencies.
“If there is progressive regulation, I think you will see, you will not see 20,000 tokens, you will see a handful, dozens, but they will be properly registered tokens. The industry is going to grow very fast,” he said.
Addressing the downfall of FTX, bitcoin enthusiasts argued that the exchange failed as a result of a lack of transparency. According to Sailor, if a company holds crypto assets, they should “not be liable to anyone else.”
Saylor also cautioned that the recent developments around FTX will certainly attract more regulatory scrutiny. However, he added that if regulators move too aggressively in response to the FTX explosion, it will hurt the industry.
“I think it’s definitely going to strengthen the hand of the regulators. It’s going to intensify their intervention. A regressive regulation, which is to say, you can’t really do anything, and it’s going to hurt the industry. Will contract,” he said.
Saylor also noted that US regulators need to clearly determine how crypto activities can come into compliance. “Regulatory interventions like enforcement of late have all been negative, but the market is waiting for regulators to say how do you register a digital currency,” he said.
as informed of, FTX filed for Chapter 11 bankruptcy late last week. Notably, the crypto exchange’s US branch, FTX US, has also been implicated in the proceedings, despite the former CEO’s claims that his US exchange was fine.
Microstrategy Now Holds Around 130,000 BTC
Microstrategy has been holding bitcoin as a treasury reserve since late 2020 and is investing millions of dollars in the flagship cryptocurrency to hedge against inflation and diversify its portfolio.
The company currently holds around 130,000 BTC, which is worth over $2.1 billion at current rates. According to the data, the average purchase price was $30,623 per coin, with a total cost of $3.981 billion. accumulated Buy bitcoin around the world. Therefore, the company is currently down over $1.8 billion on its bitcoin investment.
Bitcoin’s poor performance has also had a negative impact on MicroStrategy’s shares, which closed down more than 19% on the previous trading day. The company’s shares are down 69% YTD.
However, the recent price crash has not affected Sailor’s optimism around the flagship cryptocurrency. “Bitcoin will be the winner because bitcoin is a digital commodity and it is the least controversial of everything,” he said in the interview.
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