Wall Street tycoon Bill Ackman enters the cryptocurrency market, believing that cryptocurrencies will continue to exist

American billionaire investor and founder of asset management company Pershing Square Capital, Bill Ackman, posted a long essay on his Twitter account stating that he believes cryptocurrency will continue to exist and, with proper supervision and regulation, has the potential to benefit society and promote global economic development. He also revealed that he has invested in several cryptocurrency-related funds and companies.

The Original Crypto Skeptic

Bill Ackman is the founder and manager of the U.S.-based asset management company Pershing Square Capital, overseeing $7.8 billion in assets. His investment philosophy focuses on "few simple, predictable, cash-flow-producing, and high-quality companies." Pershing Square Capital holds only 7 stocks, including Domino's Pizza and Hilton Worldwide Holdings. Ackman not only deeply understands these companies but also engages in governance after purchasing stocks to improve the company's structure, similar to Warren Buffett's approach. Forbes featured Ackman on its cover in 2015, calling him the "Baby Buffet."

Ackman admits that he was initially a crypto skeptic, but after researching some interesting crypto projects, he began to believe that blockchain technology could create unique businesses that other technologies cannot achieve. By issuing tokens to incentivize participation from enterprises and individuals, projects can grow rapidly and give tokens intrinsic value.

The issue with cryptocurrencies is that unethical project initiators can easily create tokens to pump and dump. In fact, the vast majority of cryptocurrencies may be used for fraudulent purposes rather than to establish legitimate businesses. However, with proper regulation and supervision, blockchain technology has tremendous potential and will eventually bring great benefits to the economy and society, similar to how telephones and the internet have.

Case Studies of Driving Industry Progress through Token Incentives

In the article, Ackman also cited Helium and DIMO as examples, explaining their models of driving industry progress through token incentives. DIMO is a decentralized Internet of Things (IoT) platform that allows users to share verified onboard vehicle data (OBD) through its app and receive corresponding token incentives. Car owners can access real-time vehicle information through the app and view past records such as maintenance and refueling. This data is valuable to car owners, automakers, suppliers, insurance companies, and even government agencies. While large companies like Tesla can build their own databases for their vehicles, leveraging DIMO's token incentive model appears to be a more efficient option, supported by blockchain technology for real-time data access.

Crypto Investments Currently Less Than 2% of Portfolio

Ackman also revealed that he is an investor in seven crypto venture funds, apart from DIMO, and has invested in several companies that help with tax compliance and prevent cryptocurrency fraud. However, these investments currently make up less than 2% of his total assets. The information in the article does not constitute any investment advice.

Source: According to the latest report from Forbes in November, Ackman's net worth is $3.5 billion.

The telephone, the internet, and crypto share one thing in common. Each technology improves on the next in terms of its ability to facilitate fraud. As such, I was initially a crypto skeptic, but after studying some of the more interesting crypto projects, I have come to

— Bill Ackman (@BillAckman) November 20, 2022