Bill Ackman, a hedge fund manager, says he is unfazed by the recent collapse of the FTX cryptocurrency exchange and the subsequent market turbulence. However he added that there is a need to strengthen regulation and eradicate “fraudulent actors” in the field. The CEO of Pershing Square Capital Management, a hedge fund management firm, tweeted on November 20 that according to him, despite recent problems “crypto is here to stay.”

“I think crypto is here to stay and with proper oversight and regulation, it has the potential to greatly benefit society and grow the global economy,” he said.

Ackman argued that each new generation of technology is even better at facilitating fraud, like the telephone and the internet. He asserts: “The problem with crypto is that unethical promoters can create tokens simply to facilitate pump and dump schemes. It may in fact be that the vast majority of crypto coins are used for fraudulent purposes rather than for building legitimate businesses.”

Nonetheless, Ackman claims that these “fraudulent actors” may be eradicated with the help of industry regulators. The investor said that he had been skeptical of cryptocurrency at first, but now believes it has “the potential to greatly benefit society and grow the global economy.”

“I was initially a crypto skeptic [but] I have come to believe that crypto can enable the formation of useful businesses and technologies that [before now] could not be created,” he continued.

Ackman On Crypto Regulations

In addition, Ackman emphasized the importance of “sensible regulation and oversight” in driving the development of the technology.

The billionaire investor’s post follows the recent demise of FTX and the resignation of its CEO. As reported in the media, Ackman deleted a tweet in which he applauded former FTX CEO Sam Bankman-Fried for admitting fault.