According to Mark Cuban, a new scandal will soon shake up the cryptocurrency industry. Let’s hope you’re wrong!
It comes as no surprise to him that the crypto ecosystem is not doing well globally. Indeed, they have been accompanied by failures, risks, scams, scams, scams and attacks. For this reason, Mark Cuban, the American billionaire investor, has warned of possible new crypto scandals and scams.
Mark Cuban: “A new scandal will shake the cryptocurrency industry”
By itself, cryptocurrencies started to get overvalued before the industry showed the stress they were going through. For example, it all started last May when the cryptocurrencies Luna and UST, or TerraUSD, crashed.
Notably, this incident caused a credit crunch that proved disastrous for many companies. Including Three Arrows Capital (3AC), which has defaulted on its payments to cryptocurrency lenders Celsius Network and Voyager Digital.
They also continued to slide when fraud allegations against FTX founder Sam Bankman-Fried (SBF) were revealed, worrying more than one in between. For all of this SBF has pleaded not guilty.
Mark Cuban says a new scandal will soon rock the crypto industry https://t.co/hd1IurzCzm— TheStreet (@TheStreet) January 5, 2023
All these events led Mark Cuban, owner of the Dallas Mavericks NBA team and investor in Shark Tank, to point out that in 2023 the cryptocurrency industry will be characterized by new scandals.
“This new scandal will emerge in the form of an implosion of so-called centralized exchanges.”
Likewise, he added, “There are probably tens of millions of dollars in operations and liquidity for tokens that serve very little. I don’t understand how they can be so liquid.”
Interestingly, he cautioned, “I have no details to offer to support my hypothesis.”
What do you think of Sam Bankman-Fried?
“I had no idea he would take other people’s money and use it for his own use.”
Specifically for Mark Cuban, Bankman-Fried should go to jail. He says prison is imminent for the former cryptocurrency kingpin.
“I don’t know all the details, but if I were him, I’d be scared of going to jail for a long time. I talked to the guy and thought he was smart.”
Finally, although Mark Cuban described cryptocurrencies as an important part of the future, the businessman clarified that “where there is opacity and lack of transparency, fraud will be found”.
‘Because it’s digital, it’s easier to discover, it’s easier to control, it’s easier to analyze. But we don’t have transparency, and as long as that’s the case, SBF can do what it did.’
I say goodbye with this quote from Christopher McDougall: “All good things begin as a movement, become a business, and end as a fraud.”