Citadel founder and billionaire money manager Ken Griffin stepped out in support of cryptocurrencies earlier this summer, despite the fact that the investing genius had previously likened the cryptospace to the 17th-century Dutch tulip frenzy, ortulipmania. Griffin has lately gone so far as to suggest that “there is no need for cryptocurrencies,” according to QZ.
Griffin has joined a long line of elite investing people who have spoken out against the digital currency world for a variety of reasons. But what is the root of Griffin’s disdain?
‘A Solution in Search of a Problem’
Griffin’s most recent comments were made to New York Times writer Andrew Ross Sorkin, who also appears on CNBC. When Sorkin pressed Griffin on Citadel workers pressuring the company’s CEO to join the crypto industry, Griffin lost no time in rectifying what he perceived as an erroneous remark. Griffin added, “I don’t have a single fund manager who has advised me we should purchase crypto.” He went on to say that cryptocurrencies are “a solution looking for a problem.”
Griffin did not elaborate, making it impossible to learn more about his beliefs. However, it is reasonable to conclude that the money manager feels that the technology that cryptocurrencies are intended to replace—fiat currency—does not need replacing at all.
Citadel as Market Maker
Griffin has discussed whether to create markets for investors interested in participating in the cryptocurrency game, despite his dislike of digital tokens. This might be done specifically via his market-making company Citadel Securities, which is distinct from his principal corporation. Griffin, on the other hand, has voiced reservations about doing so, noting that he has “a hard time thinking about” trading a commodity he is so doubtful about.
Griffin is far from the first significant financial figure to be critical of digital currency. JPMorgan Chase CEO Jamie Dimon has been as vocal, labeling cryptocurrency a “fraud.” However, Dimon has decided to establish a cryptocurrency strategy. Many other researchers and economists believe the field is a bursting bubble. Nonetheless, the promise of rapid and cheap profits continues to entice investors all around the globe.
Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion by Investopedia or the writer to do so. Because every person’s circumstance is different, a knowledgeable specialist should always be contacted before making any financial choices. Investopedia makes no guarantees or warranties about the accuracy or timeliness of the information provided on this site. The author owns bitcoin and ripple as of the day this post was published.
You are looking for information, articles, knowledge about the topic Why Citadel’s Ken Griffin Is Down on Crypto on internet, you do not find the information you need! Here are the best content compiled and compiled by the smartinvestplan.com team, along with other related topics such as: Cryptocurrency.