Mark Cuban: “Crypto market fall will have a cleansing effect”

The downturn in the cryptocurrency market has left investors wary of what comes next. However, according to billionaire Mark Cuban, this will have a “cleansing” effect and become a source of innovation.

Speaking to Fortune, billionaire Mark Cuban, Shark Tank investor and Dallas Mavericks owner, expressed the opinion that companies that are kept only on “easy” money, stocks and investments in crypto assets, while not having serious business prospects, are expected to die out.

Kuban noted that the collapse of the Terra ecosystem caused a ripple effect in the crypto industry. Just this week, two major companies – Celsius Network and Three Arrows Capital – faced possible insolvency and liquidation of millions of dollars of assets. At the same time, the capitalization of the cryptocurrency market is falling and is now less than $1 trillion.

“The crypto market has seen an explosion of failed and troubled projects amid a sharp downturn that has left investors wary of what comes next. As Warren Buffett says, “It’s only when the tide goes out that you know who’s swimming naked,” Cuban said.

However, despite the prevailing negative sentiment in the industry, the billionaire believes that this is a temporary phenomenon. According to Cuban, the decline in the cryptocurrency market “will have a cleansing effect and will be a source of innovation.”

“Disruptive applications and technologies released during a bear market, whether it be stocks, cryptocurrencies, or any other business, will always find a market and succeed,” he said.

In May, Mark Cuban suggested that most companies using NFTs and DeFi would leave the market, leaving only firms that unlocked the potential of smart contracts.