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The CEO of Red Date Technology compared bitcoin and other cryptocurrencies to a Ponzi scheme. However, the businessman believes that with proper regulation, stablecoins could become a means of payment.
Yifan He (Yifan He) published an article in which he compared cryptocurrencies with financial pyramids. He mentioned the May collapse of the Terra project, when the LUNA crypto asset collapsed to almost zero in just a few days, and the UST token lost its peg to the dollar. At the same time, He criticized the X-to-earn model, calling it a phishing strategy by which companies collect data from people.
The CEO of Red Date Technology announced that he is not a fan of bitcoin and other cryptocurrencies. In his opinion, all crypto assets have similarities with the Ponzi scheme, just each has its own level of risk, depending on market capitalization and the number of users. He added that he has never had a cryptocurrency wallet, he has not bought cryptocurrencies and is not going to buy them in the future. Even if digital assets are regulated by governments, it is unlikely to increase their value, He is sure.
The businessman believes that the authorities of El Salvador and the Central African Republic (CAR), who decided to legalize bitcoin, seriously need basic training in finance. According to He, the leaders of these states put entire countries at risk, unless their original intentions were to scam their own citizens. At the same time, He believes that a certain part of the cryptocurrency market could still succeed if it were under the proper control of regulators. We are talking about stablecoins pegged to state currencies:
“USDC or USDT are not speculative assets, but currencies that can be used for payments. Once they are fully regulated, they will be fine.”
Red Date Technology took part in the development of the Chinese national project Blockchain Service Network (BSN). Earlier, BSN announced its readiness to add support for stablecoins in 2021. However, in the end, the idea had to be abandoned due to China’s hostile attitude towards cryptocurrencies.
Hae mentioned recent statements by Microsoft co-founder Bill Gates, who believes that investing in cryptocurrencies is pointless. A similar position is held by the legendary investor Warren Buffett (Warren Buffett). He considers it expedient to invest money only in industrial assets and real estate.
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