Mark Cuban Says FTX Indulgence Isn’t an Explosion in Crypto – Shows Why He’s Invested in Crypto – Featured Bitcoin News

Shark Tank star and NBA Dallas Mavericks owner Mark Cuban says recent explosions in the crypto space, including the FTX implosion, were “banking explosions,” not crypto explosions. He also explained why he made the investment in cryptocurrency.

The recent explosions are not specific to cryptocurrency

Mark Cuban made it clear on Twitter Saturday that the FTX meltdown is not an explosion in crypto. Commenting on Shark Tank co-star Kevin O’Leary discussing why the cryptocurrency exchange crash marked a turning point for the industry, Cuban tweeted:

These weren’t cryptocurrency explosions, they were banking explosions.

“The wrong entity lending, collateral miscalculation, and arrogant arbitrage followed by depositor scams,” the Shark Tank star explained. “See long-term capital, savings and loans, and subprime mortgage inflation. All different versions of the same story.”

Many people on Twitter agree with Cuban. One user described: “There was nothing specific about cryptocurrencies… the other recent bombings (3AC, Celsius, Voyager, Blockfi) were basically all tradfi style bombings too (lots of leverage, bad collateral, weak hedging For liabilities from customer deposits, fraud).

“That’s right,” wrote Kevin Hobbs, CEO of Aventus Ventures. “It’s the so-called centralized crypto companies that are heavily invested by bankers, run by ex-bankers, ex-SEC, CFTC, and government that have caused all this.” The biggest explosions in cryptocurrencies. He added that true decentralized finance (challenging) “with a new regulation of today’s world is what is needed.”

Thinking Crypto podcast host Tony Edward agreed with Cuban, saying:

Mark here. This was not a crypto fiasco but rather a scam taking advantage of investors and a lack of regulation. Bitcoin, Ethereum, XRP, ADA blockchains, etc. are all in good stead. It will take time and it will take a major brand organization to embrace encryption until we can build trust back with the mainstream.

Why does Mark Cuban invest in crypto?

In another tweet, Cuban shared why he is investing in cryptocurrency despite the recent market sell-off after the FTX fiasco. The Dallas Mavericks owner tweeted on Sunday:

Essential question. Why did you invest in cryptocurrency? Because I believe that smart contracts will have a huge impact in creating valuable applications.

“I’ve said from day one, the value of a token is derived from the applications that run on its platform and the tool that creates it,” he explained.

Do you agree with Mark Cuban? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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