Shark Tank star and the proprietor of the NBA group Dallas Mavericks, Mark Cuban, says latest blowups within the crypto house, together with the FTX implosion, “have been banking blowups,” not crypto blowups. He additionally defined why he invests in crypto.
Latest Blowups Aren’t Crypto Particular
Mark Cuban defined on Twitter Saturday that the implosion of FTX shouldn’t be a crypto blowup. Commenting on his Shark Tank co-star Kevin O’Leary discussing why the collapse of the crypto trade indicators a turning level within the business, Cuban tweeted:
These blowups haven’t been crypto blowups, they’ve been banking blowups.
“Lending to the unsuitable entity, misvaluations of collateral, smug arbitrages, adopted by depositor runs,” the Shark Tank star elaborated. “See long-term capital, financial savings & mortgage and sub-prime blowups. All totally different variations of the identical story.”
Many individuals on Twitter agreed with Cuban. One person described: “There was nothing particular about crypto … Different latest blowups (3AC, Celsius, Voyager, Blockfi) have been all basically tradfi-style blowups too (an excessive amount of leverage, dangerous collateral, poor hedging of liabilities from consumer deposits, fraud).”
Aventus Ventures CEO Kevin Hobbs wrote: “That is true. It’s the centralized so-called crypto firms which can be closely invested in by bankers, run by ex-bankers, ex-SEC, CFTC, authorities that has brought on all the most important blowups in crypto.” He added that true decentralized finance (defi) “with new regulation for Immediately’s world is what’s wanted.”
The host of the Considering Crypto podcast, Tony Edward, concurred with Cuban, stating:
Mark is correct right here. This was not a crypto failure however a scammer profiting from buyers and the shortage of regulation. Bitcoin, Ethereum, XRP, ADA blockchains and so forth are all in tack. It can take time and a serious model establishment adopting crypto for us to construct belief once more with the mainstream.
Why Mark Cuban Invests in Crypto
In one other tweet, Cuban shared why he invests in crypto regardless of latest market sell-offs following the FTX failure. The Dallas Mavericks proprietor tweeted Sunday:
A fundamental query. Why have I invested in crypto? As a result of I consider good contracts could have a major influence in creating invaluable purposes.
“I’ve mentioned from day one, the worth of a token is derived from the purposes that run on its platform and the utility they create,” he clarified.
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