Mark Cuban, star of Shark Tank and owner of the NBA team Dallas Mavericks, warns that the next crypto collapse may come from the “discovery and removal of wash trades” on centralized exchanges of centralized exchanges. The billionaire’s comments follow the collapse of crypto exchange FTX, which wiped out billions of dollars in customer funds.
Mark Cuban on the next crypto implosion
Shark Tank star and owner of the NBA team Dallas Mavericks, Mark Cuban, shared his thoughts on the next crypto implosion on The Street published Friday. The billionaire said.
I think the next possible civil war is the discovery and removal of wash trades on central exchanges.
“There are probably tens of millions of dollars in trades and liquidity for tokens that are rarely used.” Cuban emphasized.” I don’t know how they can be that liquid.”
But the Shark Tank star admitted, “I don’t have any specifics to offer to support my speculation.”
Wash Trade has long been a concern with cryptocurrency exchanges seeking to inflate their trading volume. Wash trading is one of the manipulative practices prohibited by the Securities and Exchange Commission (SEC), and regulators around the world are increasingly cracking down on wash trades involving cryptocurrencies.
Kim Grauer, research director at blockchain analytics firm Chainalysis, said last September that washtrading in the crypto space is now “a legal gray area trying to understand how this should be regulated and what is illegal.” He stated.
The crypto industry is also suffering in the aftermath of the collapse of crypto exchange FTX, which filed for bankruptcy in November. Former FTX CEO Sam Bankman-Fried (SBF) was charged with multiple counts of fraud. However, he pleaded not guilty to those charges.
Cuban said in November that if he were Bankman-Fried, “I fear I would be in jail for a long time.” He emphasized.” It certainly looks bad.” The billionaire owner of the Dallas Mavericks previously described the recent explosions in the crypto space, including the FTX collapse, as more of a “banking explosion” than a “crypto explosion.”
The Shark Tank star believes Bitcoin is a good investment, and he called gold investors “dumb.” He also revealed that he is investing in crypto because he expects smart contracts to have “a big impact on creating valuable applications.”
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