With regulation coming in to curtail the industry, the crypto sector as a whole will never again see a bull run, according to Mark Moss, Host of the Mark Moss Show and CEO of Market Disruptor. However, he claimed that this would not affect Bitcoin, which he called a “decentralized revolution” in technology.
Central to Moss’s thesis is that once new crypto ventures are regulated, venture capital funds will have to hold them for a “7 to 10 year” lockup period, instead of hyping up new coins and then dumping them before the price collapses. This “pump and dump” scheme has been behind many crypto bull markets, including the runup in the price of FTT, FTX’s native token.
The collapse of FTX, once the world’s third largest crypto exchange by trading volume, has accelerated calls for crypto regulation. This could affect venture capital funds, who treated cryptocurrency projects as unregulated entities, without subjecting them to the long holding period typically required.
Furthermore, Moss explained that most coins would likely be regulated as securities, which would require crypto projects to engage in disclosure.
“Imagine Ethereum going through full disclosure,” said Moss. “Who created the token?… How many [tokens] are controlled by insiders? What’s the connection between the Ethereum Foundation, Joseph Lubin, and Vitalik Buterin? Who controls the tokens in The Merge lockup?… I can’t imagine they’d want to [go through full disclosure].”
Countering the argument that in the event of tighter U.S. regulation crypto projects would simply migrate offshore to more regulatorily friendly jurisdictions, Moss contends that smaller markets won’t bring in big capital.
“Sure, the SEC clamps down and [crypto] goes offshore… to some small jurisdiction,” he explained. “But the American venture capital companies can’t skate past U.S. regulations to try to invest in these little obscure markets. So sure, it’ll move to another country… but the money won’t go with it, which drives the entire market cap.”
Moss spoke with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
Moss predicts that the Crypto Winter will not impact Bitcoin in the very long run, claiming it is “a technological revolution that changes the course of humanity and drives financial markets.”
“Bitcoin is solving a problem that has plagued humanity from Day One, which is, how do I secure my property so it can’t be manipulated, seized, or stolen?’ He said. “I can have custody of [Bitcoin] and if I want to send it to you, nobody could stop it, block it, or prevent it.”
He suggested that because the “U.S. dollar is not a good store of value,” people would use Bitcoin as an inflation hedge, causing Bitcoin’s demand to keep growing.
“If there are more people that want to buy Bitcoin, there’s more demand for Bitcoin but the supply is capped at 21 million,” he observed. “The price would go up.”
Bitcoin’s price by the end of 2023 will most likely hit around $33,000 to $38,000 according to Moss, who said “I would expect Bitcoin to probably at least double from here by the end of next year.”
To find out Moss’s 2030 Bitcoin price prediction, watch the video above
Was FTX a ‘controlled demolition’?
Moss speculated that the recent collapse of FTX, once the third-largest crypto exchange by trading volume, was a “controlled demolition” by “Deep State” operatives to bring down the crypto industry.
Although he acknowledged that there is “no smoking gun” to prove his theory, he said there are “a lot of coincidences” around Sam Bankman-Friend, also known as SBF, the Founder of FTX.
“[SBF’s] father actually wrote legislation for Elizabeth Warren who, coincidentally, is the one [proposing] a new Digital Asset Anti-Money Laundering Act, and his father wrote multiple papers on why we need to get rid of cash,” he said. “His parents collectively are bundlers, which means they’re in Silicon Valley, meeting with their buddies and collecting money together to donate to Super PACs [political action committees].”
Moss also pointed to SBF’s aunt, Linda Fried, whom he said “works for the World Economic Forum,” and “Johns Hopkins University, which was involved in [Event] 201” in 2019, which some claim was a simulation of the COVID pandemic.
“You have this deep connection in family ties from [SBF’s] brother, his aunt, the World Economic Forum, Johns Hopkins University, the pandemic, his parents, the bundlers, and it goes on,” he said.
He added, “when there are too many coincidences, there must be something there. As they say, where there’s smoke, there’s fire… we have no smoking gun here but we have a lot of very odd coincidences.”
To find out how Moss expects the SEC and CFTC to regulate crypto, watch the video above
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