Billionaire entrepreneur Mark Cuban called the cryptocurrency crash the "Great Unwind". In recent weeks, many cryptocurrencies have experienced a steep decline. There quotation of Bitcoin has dropped to around $ 35.000 at the time of writing. Dogecoin also fell as low as $ 0,30 today, while Ethereum is just above $ 2.000.
What does the "shark" think?
The billionaire is known as one of the main "shark investors" in the popular ABC television series Shark Tank. Cuban also owns the NBA's Dallas Mavericks.
Cuban's comment, summarized as “Unstake, Remove Liqudity, Repay” came in response to a post by Larry Cermak, editor of The Block, who defines himself as “the first and last word in the field of digital resources”. Cermak retweeted a February post in which he wrote: “The implications of forking 1: 1 of Ethereum projects but on all other competing L1s are actually bigger than people believe. There are a ton of L1s and the ratings are already stretched on Ethereum as well. The dilution of buyers and money can cause serious problems for the IMO ”.
Under his retweet, Cermak added: “It took a lot longer than I thought, but IMO is a big reason we're seeing 60% super-fast crashes. It is that there were too many projects driven to crazy valuations and not enough liquidity to support prices when the new demand runs out. Add leverage and voila ”.
In a post following his initial comment, Cuban wrote: “The situation gets worse when a double number hits those who have been long enough not to think they would ever be hit. When they are hit, it means that most of the dry dust that was used to maintain the support levels has also been dissolved ”.
A software destined to be successful
Cuban later told Newsweek in an email that "the more useful the platform is, the greater the success."
“In the end, all cryptocurrencies are software and the most successful software has happy users who can't do without it and are willing to pay enough to keep them active,” he wrote. "If there is one thing that cryptocurrency enthusiasts lose track of, it is that there are many participants at the base, from token holders to validators, miners and others all receive [sic] rewards."
“These rewards are only valuable if there is enough income,” Cuban added. "So speculation aside, the best platforms will do well in the long run."
Bitcoin was the first decentralized cryptocurrency and was released as open source software in 2009. Although initially only worth a few cents, one bitcoin has skyrocketed to be worth tens of thousands of dollars today. Its value peaked earlier this year at over $ 63.000.
Other cryptocurrencies, such as Dogecoin and Ethereum, have become popular with investors in part due to their significantly lower price and the hope that their value will increase in the coming years.