A previous loss of $9.74 million (£7 million) in cryptocurrency investment has been attributed to “over leveraging” by British YouTuber KSI.
KSI, a well-known YouTube personality, is a member of a group of cryptocurrency investors who made and lost a lot of money during the most recent Bitcoin (BTC) crash.
However, in his most recent interview, the United Kingdom-based influencer demonstrated his continued support for and belief in the Bitcoin ecosystem.
After being posed the hypothetical question of “JJ” KSI, also known by his alias Olajide Olayinka Williams ‘JJ’ Olatunji, expressed an interest in providing a stimulus package that would “give everyone £100 worth of Bitcoin.” KSI claimed to be a supporter of the cryptocurrency ecosystem, stating:
“I think Bitcoin is the future. It’s definitely going to be long term, but in ten years’ time, people who invested will be laughing.”
The YouTuber also made a comparison between the ongoing inflation of fiat currency and the rise in value of Bitcoin as a result of the traditional practise of printing money. To further bolster his argument he added: “you can’t increase the amount of Bitcoin and that has value.”
KSI had previously invested £2 million ($2.7 million) in cryptocurrencies, including Bitcoin, which reached a peak of £7 million ($9.74 million) at the time of the investment. However, when he revealed the incident, he claimed that he had lost everything because the digital assets had been “liquidated as a result of the Bitcoin crash.” He went on to say:
“This is a long-haul thing and I’m here for the journey.” The influencer also stated that the general public is unable to predict Bitcoin’s growth potential and is adopting a “get in and out” approach to investing in the cryptocurrency.
Reminiscing about his previous cryptocurrency investments, KSI asserts that he has a thorough understanding of the crypto space and attributes his losses to “overleveraging.”
Cryptocurrency exchanges all over the world have taken the initiative to change the perception of cryptocurrency as a high-risk investment. One of the first steps in this direction was to drastically reduce the amount of leverage in the financial system.
According to a report published by Cointelegraph, prominent cryptocurrency exchange FTX announced a plan to reduce risky trading by reducing maximum leverage to 20x, a reduction of more than 80% from the previous level.
To promote responsible trading, FTX Chief Executive Officer and crypto billionaire Sam Bankman-Fried asserted that traders who use large amounts of leverage are more likely to lose their crypto assets in their first trades.
Other cryptocurrency exchanges, such as Huobi Global, have recently implemented restrictions on higher leverage in order to keep up with the trend. Binance has also set a limit of 20x leverage for new users, with the intention of making this a standard practise for all existing users in the future.