Billionaire Chamath Palihapitiya Issues Crypto Warning, Predicts Industrys Honeypots Will Be Exposed
Billionaire Chamath Palihapitiya
Modified Date:- Published Date:-Categories: Cryptocurrency

Billionaire venture capitalist Chamath Palihapitiya says a new phase of cleanup is coming in the crypto markets. In the latest all-in podcast, the serial entrepreneur says that one day, people involved in unfair or unethical token sales could be sued, leaving much of the industry unscathed. "Wait Until These Token Sale Things Are Litigation.
I mean, the amount of grants by many of these venture firms running these sketchy deals where they'll put some amount of -- that's my understanding of scam as it was explained to me -- you put a little bit of equity in it at some crazy price. , and then you get these tokens, and obviously, you can sell these tokens on day one.
So what happens, you price the equity, but it's pointless because what you're really getting is the right to get some amount of tokens, the price goes crazy, you sell it and walk away. .. you can do these deals where you just rinse and repeat these things. Wait until it is exposed.Palihapitiya also says that regulators may have a field day to look behind the scenes at some of the industry's infrastructure that may or may not be involved in insider trading.
“If they really want to find honeypots here, it is the worst-kept secret in crypto: how much insider trading is going on between the organizations running the exchange, and their side wallets which they use to manage liquidity. Mine. Which means, this is the biggest thing that's happening in crypto."
Billionaire Chamath Palihapitiya, who invests in Facebook and Google, has issued a warning to investors about virtual currency. In a world of talk he is proposing a new way of looking at crypto, one that sees it as a honeypot for the unscrupulous. He claims that fraudsters will look to cash in on this new way of placing bets.