SkyBridge Capital Founder Sounds Alarm Against Shorting Coinbase (COIN) Stock
Former White House Director of Communications Anthony Scaramucci, who is the founder and managing partner of global alternative investment firm SkyBridge Capital, has warned investors against short-selling Coinbase (NASDAQ: COIN) stock.
SkyBridge Capital is “an SEC-registered investment adviser and global alternative investment manager that invests in hedge funds, digital assets, private equity, and real estate.”
During a new interview with CNBC Overtime, Scaramucci said he disagreed with the skepticism poised towards Coinbase by fellow hedge fund founder Jim Chanos. Scaramucci claimed that Coinbase is a leader within the crypto industry and has the potential to grow significantly.
As reported by the The Daily Hodl, Scaramucci said:
There’s exponential growth that’s going to happen in the cryptocurrency markets. There’s the likelihood of a cash ETF [exchange-traded fund], if not at the end of this year, certainly by the end of next year.
Scaramucci predicted there would be a “proliferation” of the market that would lead to explosive growth for Coinbase, regardless of falling margins.
Scaramucci also disagreed with any comparisons between Coinbase and Enron, saying that he was unaware of any fraud at the former. Chanos made a fortune by shorting scandal-ridden Enron before its collapse in 2001.
Scaramucci continued, warning that Chanos was failing to properly analyze the intricacies of the decentralized market:
I would actually caution him to do that, and spend some more time with the company to see all the different things they’re working on and all the potential revenue avenues.
Scaramucci also highlighted Goldman Sachs becoming the first major bank to participate in an over-the-counter Bitcoin trade with Galaxy Digital, saying it was a strong indication of the bank’s demand for crypto-related products.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.