In a tweet reply over the weekend, billionaire businessman and crypto advocate Mark Cuban described the current price action as part of the “great unwind”. The comment was in response to Larry Cermak, Director of Research at The Block, and emphasized the implications of over-leveraged traders leading to ‘unwinding’.
In a response to Newsweek about the tweet specifically, Cuban elaborated, “if there is one thing crypto enthusiasts lose track of, it’s that at its base, there are a lot of participants from token holders to validators, miners and others all get rewards”.
Cuban And Crypto
Mark Cuban is no stranger to crypto. The Dallas Mavericks owner, ‘Shark Tank’ regular, and serial entrepreneur has been outspoken about smart contracts, NFT projects, and more.
In a detailed email exchange published by Wall Street Journal columnist Andy Kessler, Cuban describes present-day NFTs as “proof of concepts” for what’s to come. Cuban pressed further when asked about smart contracts’ use case in things like mortgages, “smart contracts on blockchains, particularly Ethereum, is an enormous game changer that every company will use”.
Mark Cuban, of course, has put his money where his mouth is too, as an early investor in crypto tools like OpenSea, CryptoSlam.io, and others; additionally, he’s doubled down recently on allowing his Dallas Mavericks to accept bitcoin, ethereum, and dogecoin for ticket sales in light of Elon Musk’s comments surrounding Tesla and bitcoin.
According to Mark, it’s all “no different than the internet of 1995 where people weren’t quite sure but eventually they saw the network effect and value. Smart contracts are going to eat a lot of the software-as-a-service world.”
Volatility Just Beginning?
Cuban insists that the best projects will persevere. Nonetheless, it’s likely that the rollercoaster ride of ups and downs will continue.
The crypto ‘fear and greed index‘ recently hit a resounding level 12, a level rarely seen. In March of 2020, the index scored around 10, and in April 2018, a record level 16 was hit. The index currently sits at 10 (“extreme fear”) at time of writing.
Volatility is nothing new, but been exacerbated recently| Source: CRYPTOCAP on TradingView.com
Mark Cuban’s Love For Ethereum
Cuban undoubtedly understands that bitcoin is the most established store of value in the crypto space currently, but the projects being built on ethereum seem to be one of the most exciting major players in the crypto space – emphasized by his public statements and by his private investments.
Cuban has said the impact of Ethereum 2.0 “could be greater than we currently imagine” and has invested in ethereum-based projects, such as Polygon.
Despite the rocky ride, Cuban seems to have his eyes laser-focused on the long-run.
Related Reading | This Is Why Mark Cuban thinks Ethereum Is A “True Currency”