Billionaire entrepreneur Mark Cuban says the current crypto market cataclysm triggered by the collapse of FTX has extra to do with banking failures than crypto itself.
The Shark Tank investor tells his 8.8 million Twitter followers that FTX’s insolvency is not any totally different from previous crises within the conventional monetary world.
“These blowups haven’t been crypto blowups, they’ve been banking blow-ups. Lending to the improper entity, misvaluations of collateral, conceited arbs, adopted by depositor runs. See Lengthy Time period Capital, Financial savings and Mortgage and Sub-Prime blowups. All totally different variations of the identical story.”
Cuban says that opposite to fashionable perception, crypto isn’t an unregulated trade. In accordance with the investor, officers might do extra to act on present laws moderately than developing with extra.
“Everyone seems to be saying that crypto is unregulated. Not true. The SEC says that they regulate crypto. Ask Kim Kardashian and the tokens they’ve sued or settled with. The query is, given the visibility of the central[ized] exchanges, why hasn’t the SEC already knocked on their doorways?”
Cuban additionally reveals his thesis for why he determined to put money into the crypto house within the face of all the present uncertainty.
“A primary query. Why have I invested in crypto? As a result of I imagine sensible contracts may have a major influence in creating useful purposes. I’ve mentioned from day one, the worth of a token is derived from the purposes that run on its platform and the utility they create.
What has not been created is an software that’s ubiquitous. One that’s clearly wanted by everybody and they’re prepared to undergo the educational curve to make use of. Possibly it by no means comes. I hope and suppose it is going to.
The perfect analogy I can use is the early days of streaming. The sh*t folks needed to do to take heed to a 16k stream of music was insane. An web subscription to your dial up modem. Obtain the supplier consumer. Obtain a TCP/IP consumer. Obtain the streaming consumer.
Click on on a batch file on a web site. Ensure all of it labored collectively. All whereas being laughed at for simply not turning in your radio or television. However for in workplace or out of market, it was price it. It began as area of interest in 1995. Now understand that sensible contracts are about 5 years previous.”
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