Bitcoin is down 11.55% in the last 24 hours in another week of heavy losses, and billionaire investor Mark Cuban says the pain may have only just begun for the crypto markets. In this environment, the crypto billionaire explains that he has received tons from two altcoin projects.
“These altcoin projects will fail, they will survive”
Mark Cuban says crypto has coincided with numerous initiatives from the internet in the early 2000s (the dot.com bubble) that did little or no use. . According to Cuban, the crypto industry, especially smart contract platforms, needs to start focusing on how to develop business models to justify some of its major considerations. Cuban explains:
Crypto is going through an internet recession. After the initial rise of exciting applications, NFTs, DeFi, P2E, we have seen the imitation phase as altcoin projects subsidize the migration of these applications to their own Blockchains. What we don’t see is the use of smart contracts to increase business efficiency and profitability. This should be the next driver. Projects that understand this will survive.
Cuban says the crypto ecosystem is getting crowded with too many projects giving it the same sales pitch as everything else. Cuban thinks imitators without a unique utility and product market fit will eventually disappear as the hype dwindles. The crypto billionaire uses the phrases:
Altcoin projects that copy what everyone has will fail. We don’t need NFTs or DeFi in every Blockchain. We don’t need bridges to move NFTs between Blockchains. We need smart contract applications that replace software-as-a-service applications.
“This is why I bought a ton of these altcoins”
When it comes to utility, Cuban is serious on Ethereum (ETH) and the largest scaling solution platform Polygon (MATIC) has been on the rise. The veteran entrepreneur says the real upside opportunities lie in smart contract ecosystems like Ethereum:
There are utility tokens like Ethereum. They have these things called smart contracts and they let you trade different things, like NFTs insurance contracts in Ethereum. That’s why I own a ton of Ethereum (ETH) and Polygon (MATIC). Because smart contracts are what HTML or Javascript are to the internet. You can create applications. NFTs are a version of applications. Anything digital can use a smart contract to become an NFT. Here is the real plus.
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