Mark Cuban says FTX implosion is not a cryptocurrency market explosion

Mark Cuban, star of Shark Tank and owner of the NBA team Dallas Mavericks, says recent explosions in the crypto space, including the FTX implosion, “have been banking explosions“, not crypto explosions. He also explained why he invests in crypto.

The recent explosions are not specific to crypto.

Mark Cuban explained on Twitter Saturday that the FTX implosion is not a cryptographic blowup. Commenting on his Shark Tank co-star Kevin O’Leary discussing why the crypto-currency exchange collapse signals a turning point in the industry, Cuban tweeted:

These explosions were not crypto explosions, they were banking explosions.

Loans to the wrong entity, poor collateral valuations, arrogant arbitrations, followed by rushes of depositors“, elaborated the Shark Tank star. “See long term capital, savings and loan and subprime explosions. All different versions of the same story.

Many people on Twitter agreed with Mark Cuban. One follower described, “There was nothing crypto-specific … Other recent blowups (3AC, Celsius, Voyager, Blockfi) were all essentially trad-style blowups as well (too much leverage, bad collateral, poor coverage of customer deposit liabilities, fraud).

Aventus Ventures CEO Kevin Hobbs wrote: “That’s right. It’s the so-called centralized crypto companies that bankers invest in heavily and are run by former bankers, former members of the SEC, CFTC and government that have caused all the biggest crypto explosions.“He adds that true decentralized finance (defi)”with new regulation for today’s world is what is needed.

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The host of the podcast Thinking CryptoTony Edward, agrees with Mark Cuban, stating:

Mark is right here. This is not a failure of crypto but a scammer who took advantage of investors and the lack of regulation. Bitcoin, Ethereum, XRP, ADA Blockchains, etc. It will take time and the adoption of crypto by a major branded institution before we can restore the trust of the general public.

Why is Mark Cuban investing in crypto-currencies?

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

Basic question. Why did I invest in crypto? Because I believe that smart contracts will have a significant impact in creating valuable applications.

I’ve said it from day one, the value of a token is derived from the applications that run on its platform and the utility they create“, he clarified.

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