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.


Don’t miss a beat – sign up for crypto email alerts delivered straight to your inbox

Check out the price action

Follow us on ChirpingFacebook and Telegram

Navigate the daily Hodl mix

Check out the latest news headlines


Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and that any losses you may incur are your own responsibility. The Daily Hodl does not advise the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl participates in affiliate marketing.

Image generated: Mid-journey

Add a Comment

Your email address will not be published. Required fields are marked *