Cryptocurrency market crash confirms Warren Buffett’s words – Mark Cuban

Cryptocurrency market crash confirms Warren Buffett's words – Mark Cuban

Billionaire crypto investor and owner of Dallas Mavericks Mark Cuban emphasized that the current market drop is reminiscent of a maxim uttered by Warren Buffett.

Cuban saw parallels between the fall after the rise of crypto markets and projects and the aphorism of the 91-year-old famous investor, the “Omaha Oracle”: “When the water subsides, you see who is swimming naked.”

Cuban’s observation is that, in an interview with Fortune on June 16, he argues that some crypto projects that have been going through tough times in the past two months have flawed business models. in the interview appeared.

“In equities and crypto, you will see companies that survive on cheap and easy money – but without viable business prospects – disappear,” the “Shark Tank” investor said.

[Warren] As Buffett said, ‘When the waters subside, you see who is swimming naked’.

He named Terra, Celsius and Three Arrows Capital among the companies that appeared to have been swimming naked.

The Terra ecosystem, now known as Terra Classic, had completely collapsed in mid-May. While the repercussions of this collapse cost investors tens of billions of dollars, the regulator launched an attack on founder and CEO Do Kwon.

Celsius staking and lending platform is struggling to recover after withdrawals stall. Investment firm Three Arrows Capital reportedly failed to meet margin calls after facing a $400 million liquidation.

Cuban said that despite the gloomy outlook in the crypto ecosystem, these downturns have had a cleansing effect on the market and the same will likely work for crypto. Yet he always said that innovation should be promoted:

Whether it’s stocks, crypto or any business, game-changing apps and technology released during a bear market will always find a market and be successful.

Avenue Capital Group CEO Marc Lasry has an even more pessimistic view of the financial markets. In general, the problems in the economy will continue until the end of 2022, as stock indices can fall as much as 10 percent on Bloomberg TV. Put forward. But Lasry believes the US economy is strong enough to keep the current downturn relatively short.

Lasry has been supporting the cryptocurrency ecosystem since 2018. In 2021, Cointelegraph reported that it was complaining that it wasn’t getting enough BTC. But he told Bloomberg TV that Bitcoin (BTC) and Ether (ETH) have already dropped more than expected, and “Nobody knows what the bottom is.”

He added that determining the bottom is difficult, even for professional traders: “That’s why you want to invest whenever possible.”

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