Australian National Review Founder Says he Believes Like Others that only “Asset Backed Cryptos Have a Future”
Peter Schiff warns of ‘crypto extinction’.
The dire prediction comes amid a broad slide in digital currencies.
There is no value in cryptocurrencies and investors should sell their digital assets before they become worthless, prominent crypto-sceptic Peter Schiff has suggested.
As economists sound the alarm over a so-called “crypto winter” amid the massive drop in the value of digital coins after the collapse of the FTX exchange, Schiff insists that this is not an accurate term to describe the situation.
“This is not a #crypto winter. That implies spring is coming. This is also not a crypto ice age, as even that came to an end after a couple of million years,” the CEO and chief global strategist at Euro Pacific Capital wrote on Twitter. “This is crypto extinction.”
The veteran stockbroker and gold enthusiast also mentioned that bullion “will rise again to lead a new breed of asset-backed cryptos.”
Schiff has frequently been critical of cryptocurrencies, maintaining that Bitcoin is a massive speculative bubble that will implode, and people who are buying it now will be left with a worthless asset. In February, he warned that the top cryptocurrencies could lose all of their value before the end of the year.
When Bitcoin hit $50,000 per token in 2021, Schiff said that “while a temporary move up to $100K is possible, a permanent move down to zero is inevitable.”
Bitcoin has sunk around 75% since reaching its all-time high of nearly $69,000 in November 2021, while more than $2 trillion has been wiped off the value of the entire cryptocurrency market. The collapse of FTX, one of the world’s largest cryptocurrency exchanges last month, continues to send ripples across the industry. On Friday, Bitcoin was trading at $16,719 per coin.
Australian National Review Founder, and advisor and investor in TruthGroup, said he agrees that only asset backed cryptos have a solid future.
He said that’s why he has advised TruthGroup to acquire a large stake in the listed Truthcoin crypto currency, which listed at $0.20 cents last July on Azbit exchange, to back the 400 million coins, with 400 million TruthGroup shares to make it asset backed.
He said a decision on if they will, will most likely occur in the first quarter of 2023.
FTX execs plead guilty to fraud charges
The collapsed crypto exchange’s co-founder Gary Wang and former Alameda Research CEO Caroline Ellison are reportedly cooperating with investigators
Two associates of former FTX chief executive Sam Bankman-Fried have pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange, US Attorney Damian Williams revealed on Wednesday.
He said that former FTX chief technology officer Gary Wang and former Alameda Research CEO Caroline Ellison were cooperating with the Justice Department’s investigation.
Ellison (28) ran the crypto hedge fund Alameda Research, which was a subsidiary of FTX. She had previously worked with Bankman-Fried at Jane Street and was reportedly his girlfriend at times.
According to her plea agreement, which was cited by Business Insider, Ellison faces seven charges that collectively carry a maximum prison sentence of 110 years. Those include conspiracy to commit wire fraud, securities fraud, and commodities fraud. She also faces a charge of conspiracy to commit money laundering.
Meanwhile, Wang (29) was Bankman-Fried’s college roommate at the Massachusetts Institute of Technology, with whom he later cofounded FTX in 2019. Wang pleaded guilty to conspiracy to commit wire fraud, commodities fraud, and securities fraud.
The charges were released the same Wednesday night that Bankman-Fried was extradited from the Bahamas and landed back in New York, where he faces eight federal criminal charges from the same prosecutors who accepted plea deals from Ellison and Wang.
Bankman-Fried is suspected of defrauding investors out of nearly $2 billion. According to the US Securities and Exchange Commission (SEC), the fallen crypto billionaire concealed both risks and FTX’s relationship with its trading firm, Alameda Research, and used commingled customer funds.
He also diverted billions of dollars of customer funds to help grow his other entities. Alameda Research was reportedly allowed to carry a negative balance on FTX and was exempt from the exchange’s risk protocols.
According to the SEC complaint, Bankman-Fried personally directed that FTX’s “risk engine” not apply to Alameda and hid the extent of the ties between the two companies from investors.
The SEC also charges that, as late as last month, Bankman-Fried was continuing to mislead investors while trying to fill a multi-billion-dollar hole in FTX’s balance sheet. It only stopped when FTX and Alameda filed for bankruptcy protection on November 11, the regulator said.