Manager Of $2,000,000,000 Hedge Fund Says Crypto Industry Will Take Off After This Happens

Managing partner of cryptocurrency hedge fund Morgan Creek Digital says it makes no sense for investors to speculate on cryptocurrencies without insurance.

In a new interview on the Blockworks Macro podcast, Mark Yusko says cryptocurrencies need to deliver value to customers in order for the centralized finance industry to take off.

“For there to be value, there must be cash or equity, debt or cash flow claim. A token that exists simply so people can trade it back and forth has no value. Uniswap, does all this volume, but if the token itself doesn’t give me a share of the cash flow these decks generate, then it really doesn’t serve the right function.

He says cryptocurrencies should also have an insurance pool similar to the Federal Deposit Insurance Corporation (FDIC), which insures deposits in US banks if these financial institutions fail.

“The other piece that needs to happen, I think, is to take a portion of the transaction layer fees and friction and create an insurance pool, the same way that FDIC does for the banking system. There has to be a lender of last resort, a security of last resort, whatever that is.

The hedge fund veteran says that every industry in the world needs a robust and viable insurance market to thrive, and the cryptocurrency industry is no different.

“You could never get a home loan if you can’t insure your home. You would never drive a car if you couldn’t insure it, yet we speculate on these assets without any promise of insurance. It just doesn’t make any sense.

https://www.youtube.com/watch?v=5Il0TDEuVDk

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