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In a new podcast, famed shortlist Jim Chanos said that he thinks shares of cryptocurrency exchanges will be under strong pressure due to declining commission revenues.
Chanos is known for predicting the bankruptcy of energy giant Enron in the early 2000s due to large-scale accounting fraud. As a result, CEO Jeffrey Skilling and other senior executives were jailed.
The investor made a big bet on the collapse of Enron in 2001 and raised them for a year until the company went bankrupt.
Chanos also bet against the now-insolvent German payment processor Wirecard and U.S. car rental company Hertz.
In May, the largest cryptocurrency exchange reported that theoretically its users could lose their cryptocurrency assets if the company goes bankrupt.
However, CEO Brian Armstrong explained that the company is far from bankruptcy, assuring of the far-fetched fears.
In addition, the billionaire executive downplayed the bearish sentiment, reporting profits and losses for the first quarter, saying that he was more optimistic than ever about the future of the exchange.
However, in May, the company suspended recruitment due to a serious market correction. Armstrong also said that in the long term, against the backdrop of growing competition, he expects a reduction in commissions.
So Jim Chanos has a new purpose.
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