Kevin O'Leary: "The collapse of large crypto companies is good for the industry"

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Shark Tank co-host Kevin O'Leary says there's no need to worry about major companies going bankrupt during the crypto winter, as their exits form a promising bottom for the market.

Venture capitalist Kevin O'Leary said that while investors fear the collapse of a large player overloaded with debt, its collapse always forms a good bottom.

"Let me explain how the bottom is formedin any market. It doesn't matter if you're in stocks or debt, cryptocurrency or real estate. You always need a big player to break even. That always helps, whether it's long-term capital or one of the crypto infrastructure companies,” says O’Leary.

According to him, this is the beginning of the processperestroika, so if you have to sacrifice someone who invested with great risks, this is normal. After all, positions are complex, opaque, illiquid and tend to zero. O’Leary believes that the collapse of a large cryptocurrency company is a good thing for those who remained in the market.

“This is good for all other companies,because they will learn from it. I think we will soon see a wave of bankruptcies in the cryptocurrency market. I don't know who it will be, but I assure you that I have seen this before. Later you will recognize those who took the high-risk position. They were destroyed, and that’s good,” he said.

Last week, MicroStrategy reported losses of $1.2 billion due to the fall in Bitcoin. At the same time, the company's management claims that these are only temporary difficulties.