Billionaire investor Mark Cuban believes there is still some value in the cryptocurrency space. Mark Cuban, a billionaire entrepreneur and owner of the NBA’s Dallas Mavericks, said that despite the collapse of FTX, he invested in cryptocurrency mostly because he believed in smart contracts and is still on the rise in this space.
“A brutal year is coming to an end for cryptocurrencies”
Last year’s bull run led to the overvaluation of cryptocurrencies. As we reported as Kriptokoin.com, fraud charges were made against FTX founder Sam Bankman-Fried. Signs of stress in the industry like this have caused a crash in the markets this year. Cuban gave an interview on Monday. “There is signal and noise,” the businessman said. He also said that a brutal year for cryptocurrencies has come to an end. However, the billionaire investor said:
99% of what happened in crypto was noise. But there is real value and signal there.
The price of the leading cryptocurrency, Bitcoin, has fallen by about 64% since January. It went below $17,000. It also continues to trade 75% lower than the all-time high of $68,790 in November 2021. Stablecoin issuer Terra and hedge fund Three Arrows Capital collapsed in early 2022 as crypto sales brought to light potential instabilities in the digital asset sector. More recently, the SBF was arrested in the Bahamas. Furthermore, he is facing fraud charges in the USA.
More transparency and oversight needed
After these events, Cuban talked about technology stocks in the early 2000s. The famous name likened the situation to the collapse of Enron and WorldCom MCI. However, Cuban said:
It takes a few scams to burst a financial bubble. Enron and WorldCom received MCI. Now SBF will get what we see with Terra and Three Arrows Capital. So now crypto will act together.
Despite these, the billionaire investor described cryptocurrencies as a big part of the future. But that will only happen if there is greater transparency and regulatory oversight. The new CEO of FTX said that the exchange misrepresented the overall value of its crypto assets. An investigation by Reuters into rival exchange Binance showed that much of its balance sheet was hidden from the public. Cuban stated:
Where you see a lack of opacity and transparency, you will find fraudulent. When it comes to enacting any of these, it turns out who’s willing. Because it’s digital, it’s easier to disclose, easier to review, easier to analyze. But we lack transparency, and as long as that is the case, the entire cryptocurrency industry is in danger.