The crypto industry is going through a rough period as it witnessed an outbreak of failed and struggling projects leaving investors concerned about their investment and the industry’s future.
According to Mark Cuban, an American billionaire, he forecasts an extinction in the future.
Dallas Mavericks owner and the Shark Tank investor says that the company didn’t have valid business prospects and was backed by “cheap and easy money” in stocks and crypto, which will eventually die out. He then quotes Warren Buffet, “When the tide goes out, you get to see who is swimming naked.”
A ripple effect of the Terra collapse could be seen in the entire crypto space. Terra collapse happened earlier this month, leaving algorithmic stablecoin TerraUSD (UST) and cryptocurrency Luna (LUNC) losing all their value.
This week started as the Celsius Network, one of the largest cryptocurrency lending platforms, stopped withdrawals.
As per the latest reports, Three Arrows Capital is also likely to face insolvency after $400 million in liquidations. Meanwhile, the global cryptocurrency market has fallen below $1 trillion as Bitcoin dropped to $20,193 on Wednesday, and the top altcoin Ethereum reached $1,023.
Even after witnessing all the bearish sentiment and high volatility in the crypto market, Cuban predicts innovation in the crypto space.
According to Cuban, disruptive applications and technology launched during a bear market, be it crypto or stocks or, for that matter, any other business, will eventually find a market and succeed.
He also says that Nasdaq and cryptocurrencies are correlated. This correlation has been proved in recent months. For instance, tech stocks and Bitcoin did a freefall together. In addition, the correlation between Bitcoin and the Nasdaq 100 recently reached near all-time highs.
Cuban also believes that even in case of rates rise, it will struggle till it’s priced in. Adding that, as with stocks, the exception is for “new, game-changing applications.”
Cuban is a self-proclaimed Ethereum maximalist and is a cryptocurrency investor. He has invested in a few blockchain companies and owns a few cryptocurrencies and NFTs.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/06/16/billionaire-mark-cuban-predicts-innovation-in-crypto-space-amid-market-crash/