Manager of $2,000,000,000 Hedge Fund Says Crypto Industry Will Take Off After This Happens – Crypto News – Crypto News
Connect with us
Manager of $2,000,000,000 Hedge Fund Says Crypto Industry Will Take Off After This Happens Manager of $2,000,000,000 Hedge Fund Says Crypto Industry Will Take Off After This Happens

others

Manager of $2,000,000,000 Hedge Fund Says Crypto Industry Will Take Off After This Happens – Crypto News

Published

3 years ago

on

The managing partner of crypto hedge fund Morgan Creek Digital says it does not make sense for investors to speculate on crypto assets without insurance.

In a new interview on the Blockworks Macro podcast, Mark Yusko says Crypto assets need to offer value to customers so the centralized finance industry can take off.

“There has to be money either equity, debt or claim on cash flow in order for there to be value. A token that simply exists so people can trade it back and forth isn’t value. Uniswap, it does all this volume, but if the token itself doesn’t give me a share of the cash flow generated by these decks, then it doesn’t really have the right function.”

He says crypto should also have an insurance pool similar to the Federal Deposit Insurance Corporation (FDIC), which insures deposits in US banks in case of failure in these financial institutions.

“The other piece that needs to happen, I believe, is taking a portion of the transaction layer fees and friction and creating an insurance pool, the same way the FDIC does for the banking system. There has to be some lender of last resort, security of last resort, whatever it is.”

The hedge fund veteran says every industry in the world needs a viable and robust insurance market to flourish, and the crypto industry is no different.

“You could never get a home loan if you could not insure your house. You would never drive a car if you couldn’t insure it, and yet we speculate on these assets with no promise of insurance. It just doesn’t make any sense.”

I

Don’t Miss a Beat SUBSCRIBE to get crypto email alerts delivered directly to your inbox

check price action

Follow us on Twitter, facebook and Telegram

surfing The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending