What Kevin O'Leary's Doubling Down on DeFi Means for Crypto.

Kevin O'Leary used to criticize Crypto, but now three years later holds a big portion in his portfolio.

(image credit: Forbes.com)

What Happened?

During an episode of ‘The Pomp Podcast,’ hosted by Anthony Pompliano, Kevin O’Leary revealed that he plans to involve himself with DeFi, commonly known as decentralized finance. DeFi is a new way to execute financial transactions through applications, cutting out banks and other financial institutions to conduct services over the blockchain. O’Leary has become a “large shareholder” in a company called DeFi Ventures that plans to use DeFi to lend out assets in exchange for yield. He targets a return of 4.5 to 8%, which could be game-changing and provide even more value for Cryptocurrencies and the Etheruem platform.

“Imagine if I could have had a 5% yield on my gold over these years, that would have been incredible. Well, I can on my crypto so that’s really what I’m doing in DeFi and I think I’ve got the best team in North America,” he explained.

Currently, O’Leary holds 3% of his investments in Bitcoin and plans to extend holdings in Crypto to about 10% of his whole portfolio. He believes that DeFi has vast potential to do well in the Crypto space, pointing out that early investors could benefit and take advantage of a new market in its early development stage.

Why is this Important?

Banks and other financial institutions worldwide are just starting to seriously consider Crypto and decentralized finance as a legitimate money-making machine and financial strategy. Kevin O’Leary states that “You’ve got less than 1% of global corporations even thinking about crypto right now.” Getting in early is a theme we have seen ever since the stock market opened. So when a well-renowned and respected investor like Kevin O’Leary begins to praise DeFi and Cryptocurrencies in general, it’s time to listen, and it’s time to invest.

In 2019 Kevin O’Leary called Bitcoin “worthless” and stated that investing in Bitcoin was like playing a “digital game” with no real-life value. Three years later, O’Leary has recognized his mistake and is now doubling down on Defi to make the most out of an opportunity we haven’t seen since the market bounced back in 2009. With volatility being a significant concern to Crypto, it is now time to look past that initial fear and begin to add it to your portfolio as a way to diversify your investments.