Billionaire entrepreneur Mark Cuban, known as one of the main investors in the reality television show Shark Tank, has commented on the cryptocurrency winter. He said that this “winter”, which has negatively impacted bitcoin and altcoin prices, will not end until projects are better focused on their utilities. He also doesn’t think the market has reached “cheap” prices yet. Here are the details…
When will the bear market end in bitcoin and altcoin projects?
Cuban has stated in the past that around 80 percent of his portfolio outside of Shark Tank is in crypto. On the June 23 episode of the Bankless Podcast, he was asked how long he believes the current crypto bear market will last. Cuban used the following statements:
It lasts until there is a catalyst and that catalyst becomes a practice. Or we regress to such lows that people say ‘oh, I’m going to buy some.
He believes that a greater focus on useful applications will save crypto from collapse. It also highlights the launch of a business-oriented app, with many apps focused on fintech or collections. He believes these will be one of those events that can turn the markets around.
Mark Cuban: Prices haven’t bottomed yet
As we reported on Kriptokoin.com, analysts predict that Bitcoin (BTC) and many other cryptocurrencies have bottomed out. But Cuban says “not cheap yet” when analyzing the high market value of some projects. The famous billionaire uses the following expressions:
You are looking at market values. You see market values of over a billion dollars, 6 billion dollars, 8 billion dollars or 40 billion dollars. But you don’t look at it and you say ‘it’s cheap’ [just looking at the price]. If you look at the DeFi summer, the coins were selling for less than a penny. Market values were in the hundreds of millions.
He says there is no benefit even with lower market cap cryptos. It gives an example of the “relatively cheap” SushiSwap (SUSHI) token with a market cap of $215 million. “If you are a liquidity provider, you are paid. But then who will buy it from you? What would be the reason for buying from you?” he adds. Cuban believes that mergers between different protocols and Blockchains will eventually consolidate the crypto industry. Because he states that this happens in every industry.
Cuban is concerned with projects aiming to offset carbon emissions.
Cuban says it will support the merging of various blockchains. He states that he will prefer a project where others will be stopped, communities will be moved to a single Blockchain, and the focus will be on applications. Thus, he says, the user base will suddenly increase 10 times. He states that at least there will be a better community to come up with better ideas.
With the crypto space having various subsectors such as layer-1s, layer-2s, NFTs and decentralized finance (DeFi) tokens, Cuban was asked what he was most optimistic about. Cuban said he is particularly interested in the carbon offset DeFi tokens he burns to offset his own personal carbon footprint. He noted that while not everyone is interested in offsetting carbon emissions, this is the “easiest way”. Ultimately, Cuban said, “they all have potential, so they got all this money, they all have a reason to think they’re better and will be successful.”
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