Shark Tank star and NBA Team Dallas Owner Mavericks Mark Cuban says the recent crypto industry explosion, including the implosion of FTX, was not a crypto explosion, but a banking explosion. He also explained why he invests in crypto.
Recent Explosion Not Unique to Cryptocurrencies
Mark Cuban took to Twitter on Saturday to explain that the FTX implosion was not a cryptocurrency explosion. Cuban commented on what his Shark Tank co-stars Kevin O’Leary said about why the collapse of cryptocurrency exchanges marks a tipping point for the industry, tweeting:
It was a bank bombing.
“Lending to the wrong institution, misvaluing collateral, arrogant arbitrage, followed by a crackdown on depositors,” elaborated the Shark Tank star. “Look at the explosion of long-term capital, savings & loans and subprime. All different versions of the same story.
Many on Twitter agreed with Cuba.
Kevin Hobbs, CEO of Aventus Ventures, wrote: Heavily invested by bankers and run by ex-bankers, ex-SEC, CFTC and government are the centralized so-called cryptocurrency companies that have caused the biggest explosion in cryptocurrency. He added that true decentralized finance (defi) is “one with the new regulations that today’s world needs.”
Thinking Crypto podcast host Tony Edward agrees with his Cuban, saying:
Mark is here. This is not a failure of cryptocurrencies, but a scammer taking advantage of investors and lack of regulation. Bitcoin, Ethereum,XRPandADA blockchains are all doing well. It will take time and major brand institutions to adopt crypto to regain trust with the mainstream.
Why Mark Cuban Invests in Cryptocurrencies
Regardless, we shared our reasons for investing in cryptocurrencies following the failure of FTX. The Dallas Mavericks owner tweeted on Sunday:
Basic question. Why did he invest in cryptocurrencies?Smart believes contracts have a huge impact on creating valuable applications.
“I said from day one that the value of the token will derive from the applications that run on that platform and the utilities they create,” he clarified.
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