Investor Dan Loeb takes an in-depth look at crypto
„Culturally, I liken the formation of a bridge between the crypto world and the old financial world to a portal between two different worlds in the multiverse,“ says Dan Loeb
Dan Loeb, CEO of New York-based wealth management firm Third Point and a well-known Wall Street trader, has said he wants to bridge the gap between traditional finance and the crypto space.
On Monday, Loeb said on Twitter that he was „deeply immersed“ in the crypto world. In doing so, he also Bitcoin Superstar mentioned a recent article on non-fungible tokens (NFTs) by Chris Dixon, a general partner at Andreessen Horowitz. Dixon explained how NFTs could change the economics of content creators. He said the technology allows them „a new way to take the money“.
Loeb said of the crypto space that it was „a real challenge to be intellectually open to new and controversial ideas“. He still has a healthy amount of scepticism about it, he said.
„Culturally, I liken the formation of a bridge between the crypto world and the old financial world to a portal between two different worlds in the multiverse,“ Loeb said. „Another notion to get past is that if you’re late to the crypto party, you’re inevitably in a bad spot with prices too high. But we’re also at an early stage right now where crypto is entering the mainstream.“
The Third Point CEO may be late to certain aspects of the „crypto party“, as he put it. But his potential entry into the space as someone from Wall Street could be the first step in getting other big investors to follow suit, still hesitant about the technology and what it means for traditional finance. The hedge fund manages an estimated $15 billion to $20 billion in assets. Loeb’s net assets are estimated at more than US$3 billion.
In July 2020, Cointelegraph reported that people like Loeb are something like „investor activists“
These are people who try to „make a significant change“ in a company by buying lots of shares or getting a seat on the board. The fact that Loeb announced his crypto push on social media may indicate that he already has some understanding of the space.
Bitcoin (BTC) and other token prices can be extraordinarily volatile simply because of rumours about institutional investors. Elon Musk, one of the richest people in the world, influenced the price of Dogecoin (DOGE) with a single tweet. Now, when a major Wall Street billionaire announces that he is considering entering this space, it could be positive news for Bitcoin and other cryptocurrencies.
„Better late than never, but Loeb seems very conflicted,“ said Joe Kernen, host of CNBC’s Squawk Box. „He’s thinking about it a lot.“