Mark Cubanthe billionaire businessman known for his role as one of the main investors on the reality television show Shark Tank, said the cryptocurrency bear market will not end until there is a better focus on utility apps.
Also, does not believe that the market has yet reached “cheap” prices.
Cuban has claimed in the past that around 80% of his non-Shark Tank related portfolio was in crypto. On a June 23 episode of the Bankless Podcast, he was asked how long he thinks the current cryptocurrency bear market will last:
“It’s going to last until there’s a catalyst and that catalyst is going to be an app, or we get so low that people say ‘fuck it, I’m going to buy some.'”
He believes that a better focus on utility apps will lift crypto from its slumpand with so many apps focused on fintech or collectibles, the launch of a business-focused application would be one of those events that could cause a change of direction in the markets.
Using the example of a “decentralized version of Quickbooks”, an accounting management software for small businesses, Cuban predicted a flood of users if something like this is released.
Despite analysts predicting that bitcoin (BTC), as well as many other cryptocurrencies, have bottomed out price-wise, Cuban says that “it’s not cheap yet” when analyzing the high market capitalization of some projects:
“If you look at the market cap, and you see it’s over a billion dollars, or $6 billion, or $8 billion, or $40 billion, you don’t look at that and say ‘that’s cheap.’ remember the summer of DeFi, these things were selling for less than a penny and their market cap was in the hundreds of millions.”
He also said that even with the smallest market capitalization cryptocurrencies “there is no utility”Y exemplifies the decentralized exchange (DEX) token SushiSwap (SUSHI) as a “relatively cheap” purchase with its $215 million market capitalization, but added that:
“They pay you if you are a liquidity provider, but then who is going to buy it from you? What is the reason to buy it from you?”
Cuba believes that mergers between different protocols and blockchains will eventually consolidate the cryptocurrency industrysince “that is what happens in all industries”.
“I’d rather be with someone who says ‘let’s do a roll-up,'” to which Cuban said that would support a merger of several blockchains, closing others and then moving the applications and communities to one and thus offer a token exchange or a bridge from the blockchains that are closed to move users:
“Now all of a sudden your user base is multiplied by 10, you still have the best apps problem, you still have to have some reason for people to want to use that blockchain, but at least you can have a better community to contribute ideas , because otherwise, you leave.”
With the crypto space having various sub-sectors such as Layer 1, Layer 2, Non-Fungible Tokens (NFTs), and Decentralized Finance Tokens (DeFi), Cuban was asked which one he was most optimistic about.
Cuban said he was particularly interested in carbon offset DeFi tokens, which you burn to offset your own personal carbon footprint. He added that while not everyone cares about offsetting their carbon emissions, it was the “easiest way” compared to buying carbon offsets from a broker, which he says is “a pain in the ass.”
Ultimately, however, Cuban said that “They all have potential, that’s why they have all this money, they all have a reason why they think they are better and they will succeed”.
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