Another billionaire moves into crypto, but New York regulators sound alarm
Separate instances this morning saw a billionaire embrace the crypto sector and a regulator move away from it.
One steps into crypto
Dan Loeb, founder and billionaire investor of Third Point, a New York-based hedge fund, said in tweets yesterday that he was “looking into” the crypto sector and assessing the various opportunities it provided.
Loeb is famous for turning $3 million into a $17.5 billion hedge fund over the years and is a well-known Wall Street figure. The crypto sector is now where he’s seeking a new opportunity.
“I’ve been doing a deep dive into crypto lately,” said Loeb, adding that it was a real test of being “intellectually open” to new and controversial ideas. “Culturally I compare bridging the crypto world with the old as akin to finding a portal between two distinct worlds in the multiverse,” Loeb added.
I’ve been doing a deep dive into crypto lately. It is a real test of being intellectually open to new and controversial ideas. Culturally I compare bridging the crypto world with the old as akin to finding a portal @chbetween two distinct worlds in the multiverse. https://t.co/LqWwfIxOyd
— Daniel S. Loeb (@DanielSLoeb1) March 1, 2021
The fund manager said maintaining a healthy skepticism was required alongside deepening one’s understanding of crypto. He stated that doing this called for engaging in what Steve Jobs (the late co-founder of Apple) described as requisite for a superior intellect: “to maintain two opposed ideas in one’s mind and retain the ability to function.”
Loeb added that another “conflict” to overcome was the idea of one being “late” to the “crypto party”—likely a reference to the asset reaching a $1 trillion valuation and finding a wide array of investors already (both retail and institutional).
“Another conflict to overcome is the idea that being late to the crypto party will inevitably lead to one taking the sucker seat at a high stakes poker table versus this still being early days in what is just now being adopted in the mainstream,” he noted.
Another conflict to overcome is the idea that being late to the crypto party will inevitably lead to one taking the sucker seat at a high stakes poker table versus this still being early days in what is just now being adopted in the mainstream.
— Daniel S. Loeb (@DanielSLoeb1) March 1, 2021
One steps away from crypto
While Loeb becomes the latest billionaire investor to step into the crypto sector, a New York regulator sounded the alarms about the digital currency space.
In a statement, New York Attorney General Letitia James advised members of the crypto industry and investors to stay vigilant against participating in or becoming a victim of illegal activities.
Terming it an “ongoing effort” to protect New York investors, James issued two alerts in response to the “extreme risk” posed to New Yorkers investing in virtual or “crypto” currencies.
She added businessmen in the space could potentially face “both civil and criminal liability” if they did not fulfill their obligations regarding registration with the state of New York when doing business with virtual currencies.
“Too often, greedy industry players take unnecessary risks with investors’ money, but, today, we’re leveling the playing field and issuing alerts to both investors and industry members across the nation,” she said, adding that all investors should proceed with extreme caution when investing in cryptocurrencies.
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