US billionaire Carl Icahn plans to allocate $1.5 billion to crypto

Billionaire Carl Icahn has revealed that he is interested in cryptocurrencies, voicing his view that most of the cryptocurrencies in circulation will not survive and announcing plans to invest $1.5 billion (£1.05 billion).

The recent dump attracts the attention of large portfolios

In an interview with Bloomberg, the founder of Icahn Enterprises announced that he wanted to make a smashing entry into the world of cryptocurrencies, earmarking an investment of a whopping $1.5 billion (£1.05 billion).

“I mean, a ‘big way’ for us would be a billion dollars, one and a half billion dollars… I’m not going to say the exact allocation.” – Carl Icahn

Carl Icahn is an investor and former adviser to Donald Trump’s administration, whose fortune is estimated by Forbes to stand at $15.7 billion (~£11 billion). A former crypto-sceptic, Icahn told CNBC in 2018 that cryptocurrencies were ridiculous and that he may be too old to make this type of investment.

Although Carl Icahn said he had not purchased any crypto yet, he said he was still exploring the possibility. But why the change of heart? While some cite the arrival of crypto-activist billionaires, it seems important to circle back on how Carl Icahn’s fortune was built.

A derivatives pioneer, Carl Icahn is a true legend who divides the world of investors. The ‘Icahn method’ has a proven track record. To summarise, the goal is to buy shares of a company when it is on the rocks and get hands on to fix it: restructuring the management, drastically cutting costs, repaying the debt burden and making it profitable, only then would he resell his stake and move on.

Most likely, ethics is not a top priority for the entrepreneur famed for the quote “in business, the ends justify the means.” This attitude earned Icahn the nickname the ‘corporate raider’.

The recent volatility of crypto markets has highlighted the huge opportunities out there for large portfolios with plenty of funds to allocate. On the smaller scale, derivatives are dangerous tools for clumsy individual traders, willing to dive headfirst into a 125x leverage trade with no risk/reward planning or exit strategy. With sharks like Carl Icahn getting into the space, we are in for some big upsets. Think you hated Elon Musk? Wait until you meet Carl Icahn.

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Hi, Привет & Salut! I’m interested in two things: crypto and languages. So I’m really excited to be part of the multinational CoinTribune team, where I can share my crypto knowledge with people from around the world, one article at a time.

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