Mark Cuban opens up about crypto crash. Famous crypto maximalist and the owner of the NBA team Dallas Mavericks cites Warren Buffett’s words about the market drop. He sees this time as an opportunity for businesses.
The worst forecasts came true: the US Federal Reserve boosted interest rates by 75 basis points, the highest one-time rise since 1991.
The Crypto market reacted accordingly. But at the time of writing Bitcoin still holds its price above $22 000, and ETH value is a bit less than $1200.
The US government declares that this isn’t the last interest rate increase during this year as they want to tackle record inflation.
The next Federal Reserve meeting also could bring a 0,5%-0,75% higher interest rate, so the more exciting changes are here to come.
Meanwhile, crypto experts are trying to explain what is going on and who is to blame. Ether maximalist Mark Cuban is among them. Recently he cited funny Warren Buffett’s advice.
Who is swimming naked?
Cuban said that during such a harsh period for stock and crypto markets companies that were sustained by cheap and easy money will disappear.
Instead, he wants to see more companies with ‘valid business prospects’ that should stay afloat.
“Like Warren Buffett says, “When the tide goes out, you get to see who is swimming naked,” Forbes’ billionaire says.
Despite the recent Terra ecosystem collapse, Celsius Network’s fears of bankruptcy, and Three Arrows Capital’s possible insolvency, Mark Cuban expects innovation to come out of the crypto market downturn as well.
According to him, disruptive applications and technology released during a bear market will always find a market and succeed. This is relevant for both the stock and crypto market, he thinks.
Cuban also underlined that recent months’ events have proved that cryptocurrencies are related to the Nasdaq, and Bitcoin is moving in tandem with tech stocks. This correlation approaches all-time highs right now.
“If rates go up, it will struggle till it’s priced in The exception, as with stocks, is for new, game-changing applications,” Cuban says.
Cuban loves crypto
Unline Warren Buffett or Bill Gates, Cuban is dedicated crypto adept and he even claims himself as an Ethereum maximalist.
Previously he said that there are a few tokens in his portfolio. He also bought some non-fungible tokens (NFTs) and has invested in several blockchain companies.
The April 2022 report says that ETH was the top asset in Cuban’s wallet, but Circle’s USDC stablecoin appeared at the number two spot.
More than two months ago there was 260 462 USDC in Cuban’s Ethereum wallet, which is more than 54% of his portfolio. Today Circle’s stablecoin is the #4 token on the crypto market by capitalization that lags behind Tether on $15 billion.
There are also OCEAN (128 619.2 coins), RARI (6632 coins), GOHM (5.9 coins), and AUDIO (10 000 coins) tokens in Cuban’s portfolio.
Generally, he spent about a few million US dollars on crypto.
According to the last recent Forbes estimation, Mark Cuban’s net worth is about $4.7 billion.
