Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Mark Cuban Says FTX Implosion Is Not Crypto Explosion – Explains Why He’s Investing In Crypto – Featured Bitcoin News
Shark Tank star and NBA Dallas Mavericks owner Mark Cuban says recent explosions in the crypto space, including the FTX implosion, “have been bank explosions,” not crypto explosions. He also explained why he invests in crypto.
Recent explosions are not crypto-specific
Mark Cuban explained on Twitter on Saturday that the implosion of FTX 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.
“Lending to the wrong entity, misvaluing collateral, arrogant arbitrations, followed by depositor runs,” the Shark Tank star elaborated. “See long-term capital, savings and loans and sub-prime explosions. All different versions of the same story.”
Many people on Twitter agreed with Cuban. One user described: “There was nothing specific about crypto… Other recent explosions (3AC, Celsius, Voyager, Blockfi) were all essentially tradfi-like explosions as well (too much leverage, poor security, poor hedging of client deposit liabilities , fraud) .”
Aventus Ventures CEO Kevin Hobbs wrote: “This is true. It is the centralized so-called crypto companies heavily invested in by bankers, run by ex-bankers, ex-SEC, CFTC, government that have caused all the biggest explosions in crypto.” He added that true decentralized finance (defi) “with new regulation for today’s world is what is needed.”
The host of the Thinking Crypto podcast, Tony Edward, agreed with Cuban, saying:
Mark is here. This was not a crypto bug, but a scammer taking advantage of investors and the lack of regulation. Bitcoin, Ethereum, XRP, ADA blockchains, etc. are all in step. It will take time and a large brand institution adopting crypto for us to build trust again with the mainstream.
Why Mark Cuban is investing in crypto
In another tweet, Cuban shared why he is investing in crypto despite the recent market selloff 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 on creating valuable applications.
“I’ve said from day one, the value of a token is derived from the applications that run on the platform and the tool they create,” he explained.
Do you agree with Mark Cuban? Let us know in the comments section below.
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