Mark Cuban Compares Crypto Crash To Buffett’s advice.
Ethereum maximalist and Dallas Mavericks owner, Mark Cuban, recently told Fortune that:
“In stocks and crypto, you will see companies that were sustained by cheap, easy money—but didn’t have valid business prospects—will disappear. Like [Warren] Buffett says, ‘When the tide goes out, you get to see who is swimming naked.’”
Cuban has said that he believes innovation will emerge from the current bear market in cryptocurrency, despite the widespread pessimism in the sector. According to him, disruptive apps and technologies that are developed during a bear market, be it in stocks or cryptocurrency, or any other industry, will always eventually find a market and flourish.
“Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed,”
The current crypto crash began with the collapse of the Terra network. Following that, Celsius, a prominent crypto lending company, has a liquidity difficulty as the market falls. After pausing withdrawals, Celsius Network might collapse like Terraform Labs’ LUNA and UST. Experts and crypto researchers, however, say Celsius Network is tackling its liquidity problem.
Cuban is himself a passionate investor in cryptocurrencies and a self-proclaimed maximalist of Ethereum’s potential. He is an investor in a number of blockchain startups and is the owner of a small number of digital currencies and non-fungible tokens (NFTs).
Mark Cuban has just recently likened cryptocurrencies to the early internet in terms of enthusiasm and skepticism. He also forecasted a shake-out in cryptocurrency and supported non-fungible tokens (NFTs).
The investor from Shark Tank and owner of the Dallas Mavericks made a comparison between the dot-com craze of the 1990s and the cryptocurrency frenzy of today.
According to him, a slowdown in the market will help rein in the excessive advertising and speculation, and it will also assist decentralized finance (DeFi), smart contracts, and other real prospects in standing out from the rest of the competition.
“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think BTC, ETH, a few others will be analogous to those that were built during the dotcom era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t.”