Mark Cuban Says FTX Implosion Isn’t Crypto Blowup — Explains Why He Invests in Crypto – Featured Bitcoin News
Shark Tank star and the proprietor of the NBA workforce Dallas Mavericks, Mark Cuban, says current blowups within the crypto area, 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 isn’t a crypto blowup. Commenting on his Shark Tank co-star Kevin O’Leary discussing why the collapse of the crypto change alerts a turning level within the trade, Cuban tweeted:
These blowups haven’t been crypto blowups, they’ve been banking blowups.
“Lending to the wrong entity, misvaluations of collateral, arrogant arbitrages, followed by depositor runs,” the Shark Tank star elaborated. “See long-term capital, savings & loan and sub-prime blowups. All different versions of the same story.”
Many individuals on Twitter agreed with Cuban. One person described: “There was nothing specific about crypto … Other recent blowups (3AC, Celsius, Voyager, Blockfi) were all essentially tradfi-style blowups too (too much leverage, bad collateral, poor hedging of liabilities from client deposits, fraud).”
Aventus Ventures CEO Kevin Hobbs wrote: “This is true. It’s the centralized so-called crypto companies that are heavily invested in by bankers, run by ex-bankers, ex-SEC, CFTC, government that has caused all the largest blowups in crypto.” He added that true decentralized finance (defi) “with new regulation for Today’s world is what’s needed.”
The host of the Pondering Crypto podcast, Tony Edward, concurred with Cuban, stating:
Mark is true right here. This was not a crypto failure however a scammer making the most of buyers and the dearth of regulation. Bitcoin, Ethereum, XRP, ADA blockchains and so on are all in tack. It’s going to 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 current 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 imagine good contracts may have a major influence in creating worthwhile functions.
“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,” he clarified.
Do you agree with Mark Cuban? Tell us within the feedback part under.
Kevin Helms
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