ICO Investors to “Get Wiped Out in Crypto ‘Mania’”
Hedge fund manager Kyle Bass comments on the raging battle over the viability of the cryptocurrency market.
Mr. Bass called many of the dozens of ICO’s (initial coin offerings) that have taken place this year “frauds,” the Hayman Capital Management founder warned in a TV interview that investors will face steep losses.
“A whole bunch of people are going to lose a lot of money,” Mr. Bass said, “These ICOs — you’re going to see a bunch of them go completely broke. A bunch of them are frauds, and that is going to be problematic for all the people that just rushed in.”
So far this year, more than $2-B has flowed into ICOs, which allow cryptocurrency startups to raise funds by issuing their own tokens.
Once the “Gold Coin Rush” settles down, Mr. Bass said, cryptocurrencies could be a viable asset class. For now, though, “it is a bit of a Mania.”
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