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Mark Cuban’s crypto investments after FTX’s bankruptcy

Mark Cuban is still bullish on cryptocurrency despite the downfall of one of the top exchanges.

Although the collapse of one of the largest cryptocurrency exchanges in the world has scared off many investors, billionaire Mark Cuban remains optimistic about the cryptocurrency market.

Cuban said in a tweet on November 13 that he has stayed connected with bitcoin since “smart contracts” are one of the major underlying technologies that allow cryptocurrency transactions.

Simply put, a smart contract is some code that is kept on the blockchain. Their reasoning relies on “if/then” statements: if criterion X is met, then do something else.

As a simplistic metaphor for a smart contract, think of a vending machine. Pick out what you’d like, drop in the right amount of cash, and take your new acquisition home with you. As soon as a consumer makes a purchase, the “smart contract” in the device will begin delivering the product.

Cuban believes that the widespread availability of useful apps will be greatly aided by the use of smart contracts.

As Cuban explains on Twitter, a token’s value is tied to how often people make use of the underlying services.

Yet what is currently lacking is a popular software that can attract users from both the crypto and non-crypto communities, encouraging more people to learn about cryptocurrency.

Still, cryptocurrencies have their drawbacks.

Cuban is bullish on the cryptocurrency market, but he has some choice words for Sam Bankman-Fried, the ex-CEO of FTX.

Cuban made the announcement on November 11 at a speech he gave at a conference put on by the Sports Business Journal. Cuban said, “With FTX now — it’s somebody operating a firm that is plain dumb as f—- greedy.”

The implosion of FTX is expected to have far-reaching effects on the cryptocurrency market as a whole. One of the largest cryptocurrency VC firms, Multicoin Capital, which has holdings in FTX, has warned its investors that it expects a big number of trading firms to be yanked out and shut down in the next weeks as a result of the implications.

Recent incidents that have shaken the cryptocurrency market are not “crypto blowups,” but rather “financial blowups,” according to a tweet from Cuban. This entails allocating resources to a group that is not a good fit.

Cuban is a veteran participant in the digital currency industry. He has put money into Ethereum and several other cryptocurrencies, NFTs, and blockchain companies over the course of his career.

In fact, he admitted that “80% of the investments that I wind up making that are not on ‘Shark Tank’ are related to cryptocurrencies” on an edition of his podcast titled “The Problem With Jon Stewart,” which was released on January 12.

Though, many in the banking sector warn against placing all your eggs in the cryptocurrency basket. James Royal, Bankrate’s head writer, recently told CNBC’s Make It that cryptocurrencies are the ultimate form of gambling on one’s faith. He remarked that “cryptocurrencies are a confidence game par excellence.”

If you believe what Royal says, “with the exception of so-called stablecoins, the prices of cryptocurrencies are supported solely by belief in their future.” There is nothing in the way of assets or cash flow to back up this claim.

Remember that bitcoin is an extremely volatile asset whose value often experiences illogical swings. Experts in the field generally agree that, because to the lack of certainty regarding the outcome of an investment, a prudent person should not risk more money than they can afford to lose.

 

Source: Cripto.Exposed