Billionaire Mark Cuban called the cryptocurrency space a bubble in 2017. But a few months later he invested in a crypto fund. He said he would rather buy bananas than Bitcoin in 2019. But earlier this year, he stated that 80 percent of his investments outside of Shark Tank are in crypto. Now, despite the crypto winter, he has discussed the 6 altcoins he loves with his Youtube channel Altcoin Daily. Here are the details…
Mark Cuban points to troubled projects in the crypto space
Cuban compared the crypto ecosystem to Silicon Valley startups like Box and Uber, which burn investor money to attract users rather than generate sustainable revenues. Cuban said on the podcast, “I’m never a big fan of raising hundreds of millions of dollars to do tens of millions of things. But that’s exactly what happened in crypto,” he said. He then used the following phrases:
So what happens: They’re going to go do a token sale and raise a lot of capital. Or worse yet, they’ll raise hundreds of millions of dollars from VCs. They will use this money to create a fake return.
Cryptocurrency market can’t find its direction
Cuban specifically mentioned the notorious Anchor protocol linked to the Terra/LUNA ecosystem. Designed to attract more users to the Luna network, Anchor has promised 20 percent returns for those who stake its TerraUSD stablecoin. However, as users started exiting UST, as we have reported at Cryptokoin.com, the price of the Luna network dropped. This caused the project to fail disastrously. Cuban said that for crypto to be a good business opportunity, it needs better use cases. He talked about how the summer of DeFi in 2020 and the rise of NFTs in 2021 are helping more people get into crypto. But he did point out how the recent crypto winter has stalled that growth.
Most of the wind is leaving crypto this year. Meanwhile, the industry seems to be struggling to find direction. “What worries me is that there is nothing in the queue,” Cuban said. “We went from DeFi to collectibles. Now – instead of seeing real innovation, you see replications,” he said. “This is not groundbreaking, just an improvement over what has already been done. This will not be enough to get people back to crypto.” used his statements.
What projects is Mark Cuban loving right now?
While Cuban has concerns about crypto, he still invests in several altcoins. He compared the process of selecting crypto projects to Peter Lynch’s famous investment advice “buy what you know”: Cuban explained how he personally used a crypto project he invested in. Cuban used the following statements:
A few years ago I went and bought some carbon offset products. Because I wanted to balance my personal and corporate carbon footprint, and going and doing it is a pain in the ass. You need to go through a broker. You don’t know if it’s real. There is no real Blockchain type scenario to verify everything. Then Klima came and I invested because as we speak now, I think it is easier to buy and burn a KLIMA token, an MCO token, a BCT token.
Cuban stated that he currently likes several other altcoins, including Apecoin, Blocto, Injective, Litosphere, and Ocean. Cuban ended the discussion by urging investors to be cautious about pursuing projects with high market caps and token prices. He explained that investors should focus on use cases rather than trying to make a profit as quickly as possible. He said crypto projects should focus on revenue rather than accruing as many investors as possible. He also explained that users should also look at utility and value as a consumer. He thinks that the price of tokens is a dry noise that has nothing to do with crypto projects.
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