Kevin O’Leary revealed on Anthony Pompliano’s podcast that he’s a major shareholder of a new decentralized-finance (DeFi) company, which aims to help investors profit from DeFi. The “Shark Tank” star and O’Leary Funds boss also predicted DeFi will play a key role in crypto’s future, and said he’s deeply interested in the space.
“What interests me the most right now is DeFi. I think it’s where the puck is going,” O’Leary said.
O’Leary said that DeFi enables him to wrap up crypto assets into Ethereum chains to make a profit, whereas storing capital in crypto investments does not allow that.
“There must be millions of people who have a little bit of coin who want to make some 4%, 5%, 6% on it,” was the thought that led him to ask his team to find experts on the matter, which they did in the Canadian startup DeFi Ventures.
The company is working to find a commercial solution to DeFi investing, enabling anyone who has a wallet to wrap their assets and utilise DeFi’s benefits automatically and in a compliant way.
O’Leary said he led a $20 million fundraising round for the company, which has yet to go live. “I am going to rename it to WonderFi because it is going to be my vehicle and I think it’s just the beginning of some great things to come,” said the investor, whose nickname is Mr. Wonderful.
The investor also said that bitcoin’s recent volatility has boosted his DeFi investments and driven up profits. “We’ve had tremendous volatility on bitcoin these last ten days. That actually enhances DeFi, it makes it better. I’m making way more on my contracts now,” he continued.
Higher returns are also making him consider shifting his asset allocation. While he currently still holds 5% gold and 3% crypto, this might change as gold does not provide him with returns, O’Leary said.
Talking about his start in the crypto industry, O’Leary spoke about the ESG concerns linked to cryptocurrencies and how they were raised by many of his institutional and sovereign fund clients. However, that didn’t deter him from going long on bitcoin, he said on the podcast.
At CoinDesk’s Consensus conference on Monday, O’Leary said that bitcoin needs to become more sustainable to attract institutional investors, and a more environmentally friendly way of mining the cryptocurrency could see its value rise as high as $200,000.