British YouTuber KSI blames “over leveraging” for his previous loss of $9.74 million (£7 million) in crypto investment.
Prominent YouTube star KSI belongs to the group of crypto investors who have made and lost a lot of money during the last Bitcoin (BTC) crash. However, the United Kingdom-based influencer’s latest interview showed his continued support and belief in the Bitcoin ecosystem.
Answering the hypothetical question of “if you were prime minister,” KSI, a.k.a. Olajide Olayinka Williams “JJ” Olatunji, shared his interest to “give everyone £100 worth of Bitcoin” in the form of a stimulus package. Claiming to back the crypto ecosystem, KSI said:
“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 contrasted fiat currency’s ongoing inflation with Bitcoin’s price owing to the traditional practice of printing money. He further strengthened this claim by stating that “you can’t increase the amount of Bitcoin and that has value.”
Previously, KSI had invested £2 million ($2.7 million) in cryptocurrencies, including Bitcoin, which at its peak, grew to £7 million ($9.74 million). However, while disclosing the incident, he claimed to have lost it all as the digital assets “got liquidated because of the Bitcoin crash.” He added:
“This is a long-haul thing and I’m here for the journey.”
The influencer also stated that the general public cannot foresee Bitcoin’s growth potential and is following a “get in and out” strategy. Reminiscing about his previous crypto investments, KSI claims to fully understand the crypto space and blames “over leveraging” as the primary cause of his losses.
Related: FTX reduces max leverage from 101x to 20x to encourage ‘responsible trading’
Crypto exchanges across the globe have stepped up to transform the narrative of cryptocurrency as a risky trade. One of the first steps in this direction has been to drastically reduce the leverage. According to Cointelegraph’s report, prominent crypto exchange FTX announced a plan to curb risky trading by reducing maximum leverage to 20x, a drop of more than 80%.
Under the pretext of responsible trading, FTX CEO and crypto billionaire Sam Bankman-Fried asserted that high leverages result in traders losing their crypto assets in their first trades. Following suit, other crypto exchanges such as Huobi Global have recently implemented restrictions on higher leverage. Binance has also imposed a limit of 20x leverage for its new users and plans to make this a norm for existing users in the future.