Michael Saylor sees crypto hedge funds such as Three Arrows Capital (3AC) as a barrier to accepting cryptocurrencies

Michael Saylor, CEO MicroStrategy and one of the largest bitcoin investors in the world, called on regulators to exercise their power over altcoins.

According to Saylor, almost 20 alternative cryptocurrencies should be classified as "unregistered securities". This would have an impact on users and companies to trade and even create more cryptocurrencies.

The CEO called the expansion of the altcoins a "show of terror" and claims that they are damaging the BTC itself.

After Saylor, Bitcoin found himself in a crossfire

Saylor's remarks were made during a podcast with Sven Henrich, the founder of NorthmanTrader. Henrich touched on the topic of the recent market crash, which severely affected the price of Bitcoin. As a result, the cryptocurrency has experienced losses of almost 30 % over the past few days.

Saylor said in his answer that Bitcoin was caught in the crossfire of the collapsing cryptocurrency market. He said the problem was that several protocols had used BTC as a guarantee to buy less proven tokens. However, token prices fell sharply, forcing investors to liquidate their investments, which increased selling pressure.

"What you have is a $ 400 billion cloud of opaque, unregistered securities trading - and they all have Bitcoin as a guarantee," Saylor argued. He added that this is why the institutional market no longer invests in BTC. In other words, the poor reputation of altcoins affects BTC performance.

For example, well-known investor Nouriel Roubini, who was one of the few to predict the crisis of 2008 over the weekend, described the fall in this market as "a Ponzi scheme collapsing under its own weight." It is because of such attitudes that, according to Saylor, regulators should intervene.

A parade of horrors

In his speech, Saylor used examples from the traditional market to justify his position. In this regard, he said that even strong multinational companies such as Apple would experience greater volatility in their stock prices if there were no regulations.

Current market rules allow, for example, the occurrence of practices such as wash trading. This practice occurs when an investor negotiates the purchase and sale of assets in the portfolios he owns. This way, if the investor has a lot of money, the asset will see an increase in volume. But this volume is artificial without real demand for the asset.

He said cryptocurrency hedge funds such as Three Arrows Capital (3AC) are more of an obstacle than someone facilitating the adoption of cryptocurrencies.

"The general public should not buy unregistered securities from savage bankers, who may or may not exist next Thursday," Saylor said.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.