Kevin O'Leary, of Shark Tank and now FTX ambassador, believes Ethereum will become "ultra-solid currency."
Kevin O'Leary, of Shark Tank and now FTX ambassador, believes Ethereum will become "ultra-solid currency." By Editor DailyBitcoin

Kevin O’Leary, from the reality show Shark Tank, announced yesterday his new partnership with cryptocurrency exchange

FTX.

***

Investor Kevin O’Leary, known for being a figure on the business TV show Shark Tank where he is referred to as “Mr.Wonderful,” supports the idea that Ethereum’ s recent EIP-1559 update can turn the market’s second largest cryptocurrency into “ultra-solid currency.”

In a video posted on Cameo, a platform where users can pay influencers to create custom videos, O’Leary talks about the potential benefits of Ethereum’ s recent EIP-1559 update and its upcoming EIP-3675 updates. So tells Daily Hodl, who accessed the paid video

.

EIP-1559 takes a portion of Ethereum’ s transaction fees and burns them instead of distributing them to miners. EIP-3675 switches Ethereum from proof-of-work (POW

) to proof-of-participation (POS).

O’Leary reads a script highlighting the potential impacts of these two key updates

.

“When you combine [EIP-1559] with EIP-3675, which changes the network to proof of participation and will arrive in a few months, Ethereum will become deflationary. This means that the amount of existing bitcoins will start to decrease. If Bitcoin is sound money because of the 21 million coin supply ceiling, Ethereum now enjoys the same benefit. It is ultra sound money because there is no supply floor and at that time. Ethereum will be considered a traditional business and can be analyzed as such, as if using a cash flow model.”

Successful business model

O’Leary also compares the mechanisms and tokenomics of the Ethereum network to a successful business model. </p

>

“Revenue: customers pay transaction fees to Ethereum to interact with it. Expenses: Ethereum pays its employees who are proof-of-stake validators to secure the network. Revenue is expected to be higher than expenses for the business to be profitable.

So, if that happens, what happens to the profits?

They get burned and the supply of ETH is reduced. This is the equivalent of Ethereum performing a share buyback. Think of it that way. It is also the equivalent of distributing the proceeds to investors and ETH holders in the form of a dividend. Ethereum will be one of the only blockchain, if not the only blockchain that is generating earnings and expects to have a price-to-earnings ratio of about 15 to 20 times, which is much better than some tech companies.”

The Shark Tank billionaire previously revealed that he owns a small amount of ETH and is betting big in the decentralized finance (DeFi) space. In fact, back in May he talked about his investment in a company in the DeFi space

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.

In partnership with FTX

The above statements came as O’Leary announced his new partnership with cryptocurrency exchange FTX

.

In the announcement, O’Leary and FTX stated that they are looking forward to a long-term investment and spokesperson relationship. It will focus on equity stakes in both FTX Trading Ltd. and West Realm Shires Services Inc.

as well as O’Leary acting as an ambassador for the exchange.

This is a multi-year agreement in which the investor will promote FTX

and its accompanying brands to its international audience. For his services as an ambassador, O’Leary will be paid in cryptocurrencies that will be managed by FTX.

After the news broke, O’Leary commented that his role at FTX

was prompted by his initial misgivings about cryptocurrency investments.

“Institutional investors struggle with the decision to invest in cryptoassets. Not because they don’t want to, but because they struggle with knowing with certainty that they will be 100% compliant with regulators and reporting requirements. I’m no different. I want to increase my exposure to cryptocurrencies, but also meet my compliance mandates. When it comes to rapidly changing compliance and tax reporting requirements, today’s cryptocurrency ecosystem is fraught with risks I can’t afford to take. To find cryptocurrency investment opportunities that meet my compliance mandates, I’m looking for a way to find a cryptocurrency investment opportunity that meets my compliance mandates.were with my own rigorous standards of compliance, I entered into this relationship with FTX.”

It’s worth noting that while in the past O’Leary had called Bitcoin and crypto “junk,” this year he has acknowledged that he invests in them.

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Sources: Daily Hodl, Beincrypto

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