Gold bug Peter Schiff said Kevin O’Leary and Mark Cuban had sold out to crypto companies over the lure of sh*tcoins.
Crypto’s “sexy story” did not fool Schiff
Speaking to Anthony Pompilano in a recent interview, the pair discussed several topics, including the macro, assets for protection, and the debt ceiling. However, of particular interest was Schiff’s take on crypto marketing.
When asked about “nefarious actions” that hurt investors, Schiff quickly pointed out that the easy money, casino-like environment of cryptocurrency encouraged fraud and get-rich-quick schemes.
Further, Schiff says that this problem “feeds on itself” in that crypto investors who make money are seen by others who experience FOMO, thus perpetuating a cycle of contagion.
“Crypto, I think, almost was a perfect asset for that. It had a real sexy story. When I first heard the story, I understood money too much to get taken in on it.”
This strategy was a huge success for early investors, conceded Schiff, but still came off the back of “marketing this pyramid, Ponzi, chain letter; however you want to describe it.”
Schiff then blasted the central banks and their quantitative easing policies, which encouraged a glut of cheap borrowing, further fueling the cycle.
The role of celebrities
Turning his attention to celebrities, entertainers, sports stars, and influencers, Schiff said crypto companies tempt them by offering sh*tcoins in return for promoting to their followers.
Throwing out the example of Kevin O’Leary, Schiff said, previously, the Canadian entrepreneur was a fierce critic of Bitcoin and cryptocurrency. However, O’Leary flipped pro-crypto after accepting an FTX endorsement deal.
“Kevin O’Leary only changed his mind because he was paid to change his mind. He became a shill for a crypto company. He was negative on BItcoin until someone paid him to be positive on it. So, he sold out.”
Schiff said the same thing happened with Mark Cuban, who was previously skeptical of Bitcoin, until “he got into NFTs and all of a sudden had laser eyes, whatever.”
There was so much money at the height of this bubble, but that bubble has now popped, said Schiff.
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