Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, says recent blowups in the crypto space, including the FTX implosion, “have been banking blowups,” not crypto blowups. He also explained why he invests in crypto.
Recent Blowups Aren’t Crypto Specific
Mark Cuban explained on Twitter Sabbatum that the implosion of FTX is not a crypto blowup. Commenting on his Shark Tank co-star Kevin O’Leary discussing why the collapse of the crypto exchange signals a turning point within the trade, Cuban tweeted:
These blowups have not been crypto blowups, they have been banking blowups.
“Lending to the incorrect entity, misevaluations of collateral, chesty arbitrages, followed by investor runs,” the Shark Tank star detailed. “See long-run capital, savings & loan and sub-prime blowups. All totally different versions of a similar story.”
Many people on Twitter united with Cuban. One user described: “There was nothing specific concerning crypto … different recent blowups (3AC, Celsius, Voyager, Blockfi) were all primarily tradfi-style blowups too (too a lot of leverage, unhealthy collateral, poor hedging of liabilities from shopper deposits, fraud).”
Aventus Ventures business executive Kevin Hobbs wrote: “This is true. It’s the centralized so-called crypto companies that square measure heavily invested with in by bankers, surpass ex-bankers, ex-SEC, CFTC, government that has caused all the biggest blowups in crypto.” He intercalary that true localised finance (defi) “with new regulation for Today’s world is what’s required.”
The host of the Thinking Crypto podcast, Tony Edward, concurred with Cuban, stating:
Mark is right here. This was not a crypto failure but a scammer taking advantage of investors and the lack of regulation. Bitcoin, Ethereum, XRP, ADA blockchains etc are all in tack. It will take time and a major brand institution adopting crypto for us to build trust again with the mainstream.
In another tweet, Cuban shared why he invests in crypto despite recent market sell-offs following the FTX failure. The Dallas Mavericks owner tweeted Sunday:
A basic question. Why have I invested in crypto? Because I believe smart contracts will have a significant impact in creating valuable applications.
“I have said from day one, the worth of a token comes from the applications that run on its platform and the utility they create,” he clarified.
( Kevin Helms, Bitcoin.com, 2022 )