Shark Tank star and Dallas Mavericks NBA team owner Mark Cuban says recent explosions in the crypto space, including the FTX implosion, “have been banking explosions,” not crypto explosions. He also explained why he invests in cryptocurrencies.
Recent Explosions Are Not Crypto-Specific
Mark Cuban explained on Twitter on Saturday that the FTX implosion is not a crypto explosion. Commenting on his Shark Tank co-star Kevin O’Leary Discussing why the collapse of the crypto exchange signals a turning point in the industry, Cuban tweeted:
These explosions have not been crypto explosions, they have been banking explosions.
“Loans to the wrong entity, erroneous collateral valuations, arrogant arbitrations, followed by runs on depositors,” explained the Shark Tank star. “Look at the bursts of long-term capital, savings and loans, and subprime. All different versions of the same story.”
Many people on Twitter agreed with Cuban. One user described: “There was nothing specific about cryptocurrencies… Other recent blowouts (3AC, Celsius, Voyager, Blockfi) were also essentially tradfi-style blowouts (too much leverage, bad collateral, poor coverage of deposit liabilities). customers, fraud) .”
Aventus Ventures CEO Kevin Hobbs wrote: “This is true. They are the so-called centralized crypto companies that bankers invest heavily in, run by ex-bankers, ex-SEC, CFTC, the government that has caused the biggest explosions in crypto.” He added that true decentralized finance (defi) “with a new regulation for today’s world is what is needed”.
Thinking Crypto podcast host Tony Edward agreed with Cuban, stating:
Mark is here. This was not a crypto flaw but a scammer taking advantage of investors and lack of regulation. bitcoin, ethereum, XRP, ADA blockchain, etc. they are all in order. It will take time and a major branded institution to adopt crypto for us to build trust again with the mainstream.
Why Mark Cuban invests in cryptocurrencies
In another tweet, Cuban shared why he invests in cryptocurrencies despite the recent market sell-off following the FTX failure. The Dallas Mavericks owner tweeted on Sunday:
A basic question. Why have I invested in cryptocurrencies? Because I believe that smart contracts will have a significant impact on creating valuable applications.
“I’ve said it since day one, a token’s value is derived from the apps that run on its platform and the utility they create,” he clarified.
Do you agree with Mark Cuban? Let us know in the comments section.
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