Cryptocurrency markets have achieved such tremendous value since its emergence but its shedding value in a quite shorter time frame is surprising. Until last year, crypto was doing well, though there were bear runs in between, yet it seemed to move upwards. However, the ongoing year came as an eclipse for the burgeoning asset industry that made many prominent players out of the game and left a question mark for its future.
Adding his opinion towards such concerns, billionaire Mark Cuban said that though he believes crypto space still has some value, the rise the industry witnessed last year seems like it was only ‘noise.’ Cryptocurrencies turned overvalued given the bull run last year that lasted until the industry’s growth slowed down due to multiple instances. This includes the recent fall of Sam Bankman-Fried’s crypto exchange FTX and the similar incidents ‘could pop the bubble’.
Dallas Mavericks NBA team owner and famous Shark Tank investor, Mark Cuban was talking about the ongoing year that came as a brutal year for cryptocurrencies. During the TV show, he said that there remains signal and noise where in terms of crypto about 99% was noise. However, he argued that there still remains real value and signal.
Bitcoin price dropped from it’s all time high of over 69,000 USD in November last year to currently trading below 17,000, following a drop of over 75%. Most cryptocurrencies within the broader market met the similar fate where the global crypto market has lost over 63% of its overall value within the last year.
The collapse of stablecoin issuer Terra and hedge fund Three Arrows Capital earlier in 2022 was caused by the crypto selloff, which revealed potential instability in the market for digital assets. The infamous founder of the now-bankrupt FTX Bankman-Fried, also known as “SBF,” was recently detained in the Bahamas and is currently being charged with fraud in the US.
These incidents led Cuban to discuss the failure of Enron and WorldCom MCI during the early 2000s tech stock sell-off.
He claimed that it only takes a few scammers to burst a financial bubble. Enron and WorldCom MCI were required.
Cuban, a seasoned cryptocurrency bull, recently declared that he would take joke cryptocurrency dogecoin, which has fallen 56% in value during this year’s selloff, as payment for Dallas Mavericks memorabilia and tickets. Since 2000, he has been the owner of the NBA team headquartered in Texas.
Source: https://www.thecoinrepublic.com/2022/12/22/mark-cuban-thinks-the-boom-in-crypto-was-noise/