Famous investor and “Shark Tank” star Kevin O’Leary has lashed out, claiming that the majority of altcoins in the cryptocurrency market have now become “useless.”
O’Leary said the regulatory framework is quickly becoming clearer, especially as new legal regulations push the market toward a Bitcoin and Ethereum-centric structure.
According to O’Leary, besides crypto assets, prediction markets and various speculative products are also undergoing significant transformation. O’Leary emphasized that CFTC regulations have not yet fully protected the market, adding that only 30% of that process is complete. He stressed that the regulatory framework initiated by the Genius Act represents a major turning point, particularly in the stablecoin market.
O’Leary said the transformation of stablecoins into “legal tender” instruments backed by U.S. Treasuries and based on assets with maturities of less than 92 days has weakened Bitcoin’s potential as a payment instrument, noting that the world has quickly adopted this new model. He added that the first major price crash happened with the regulation of stablecoins.
O’Leary noted that another critical item on the agenda is the “Clarity Act”, adding that it is expected to be passed in the first half of 2025. Stressing that institutional investors will accelerate their entry into the market, O’Leary said this transformation would lead to a radical cleansing of the crypto world.
Stating that institutional investors will not be interested in assets other than Bitcoin and Ethereum, the famous investor said that the data is very clear: “To capture about 90% of the returns and volatility of the crypto market, one only needs to own Bitcoin and Ethereum. Nothing else is needed.”
In this context, O’Leary said that large funds will tend to add 3-5% of Bitcoin and Ethereum to their portfolios in the coming period, saying that this represents a “harsh reality” for hundreds of altcoin projects. According to O’Leary, the market will undergo a cleansing process, with the majority of altcoins with no real utility being removed.
O’Leary noted that investors holding only Bitcoin and Ethereum have performed much better than altcoin holders over the past eight weeks, adding that for altcoins to make a comeback, they must offer a real use case and allocate tens of millions of dollars in marketing budgets.
*This does not constitute investment advice.