Mark Cuban Says FTX’s “Blowout” Has Nothing To Do With Cryptocurrency
Mark Cuban, a multibillionaire entrepreneur, believes that the current crypto market crash precipitated by the loss of FTX has more to do with banking issues than with crypto itself.
The Shark Tank investor explains to his 8.8 million Twitter followers that FTX’s collapse is comparable to other crises in the conventional banking sector.
“These blowups have not been crypto blowups, they have been banking blow-ups. Lending to the wrong entity, misvaluations of collateral, arrogant arbs, followed by depositor runs. See Long Term Capital, Savings and Loan and Sub-Prime blowups. All different versions of the same story.”
Contrary to widespread opinion, Cuban asserts that cryptocurrency is not an uncontrolled sector. According to the investor, government may act more on current restrictions as opposed to creating new ones.
“Everyone is saying that crypto is unregulated. Not true. The SEC says that they regulate crypto. Ask Kim Kardashian and the tokens they have sued or settled with. The question is, given the visibility of the central[ized] exchanges, why hasn’t the SEC already knocked on their doors?”
Cuban also explains why he chose to participate in the cryptocurrency market despite the present uncertainties.
“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 value of a token is derived from the applications that run on its platform and the utility they create.
What has not been produced is a ubiquitous application. One that is obviously needed by everyone and they are willing to go through the learning curve to use. Perhaps it never arrives. I hope and think it will.
The best analogy I can use is the early days of streaming. The sh*t people had to do to listen to a 16k stream of music was insane. An internet subscription for your dial up modem. Download the provider client. Download a TCP/IP client. Download the streaming client.
Click on a batch file on a website. Make sure it all worked together. All while being laughed at for just not turning on your radio or tv. But for in office or out of market, it was worth it. It started as niche in 1995. Now realise that smart contracts are about five years old.”
