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Mark Cuban Says Crypto Startups With Good Fundamental Will Thrive

With the combined crypto market capitalization slumping far below the $1 trillion mark earlier this week, several crypto projects are facing a massive economic downturn in response.

Weighing on the current outlook of the ecosystem, Mark Cuban, an Ethereum maximalist and owner of the Dallas Mavericks basketball team, is backing projects with positive fundamentals in the crypto industry.

In an interview with Fortune, Cuban said events like the one the crypto industry is currently experiencing will expose and crumble companies being sustained by poor market fundamentals.

“In stocks and crypto, you will see companies that were sustained by cheap, easy money—but didn’t have valid business prospects—will disappear,” the Shark Tank investor told Fortune. “Like [Warren] Buffett says, ‘When the tide goes out, you get to see who is swimming naked.’”

Cuban’s assertion is playing out vividly with companies like Celsius currently unable to meet up with its withdrawal obligations when it suspended this aspect of its operations just before the start of the week. The past month has seen numerous projects like Terra crumble, while legacy companies like Coinbase, BlockFi, and Gemini have announced plans to downsize their operations to cut costs.

To Cuban, these are not new, however, he maintained that there is light at the end of the tunnel as projects with good fundamentals usually survive this comprehensive onslaught.

“Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed,” he said.

Cuban is one of the Wall Street investors whose influence in the digital currency ecosystem is very strong. Known as a staunch advocate of Dogecoin (DOGE), Cuban is one of the investors who are in the space for the long haul. As a show that he understands the dynamics in the crypto world, he has a number of NFTs and investments in blockchain companies.

Buying Land in Metaverse is "Dumbest Sh*t Ever", Says Billionaire Mark Cuban

Billionaire investor and owner of Dallas Mavericks, Mark Cuban may be a crypto fan and a Bored Ape Yacht Club (BAYC) owner, but he sure is a big critic of metaverse land sales that is making the rounds today.

In a recent interview with Altcoin Daily, Cuban said, “The worst part is that people are buying real estate in these places. That’s just the dumbest shit ever.”

This comes as a somewhat shocking positioning for Cuban, whom many industry stakeholders have come to rely on as a credible mouthpiece to push forth all things crypto. Cuban’s comment is hinged on the growing trend by brands including Meta Platforms Inc, Gucci, and Salvatore Ferragamo, amongst others who are doubly invested in pursuing new metaverse-themed initiatives for the next phase of their business engagements.

Cuban is not entirely convinced by the assumptions that scarcity is going to drive the price of metaverse-based lands upwards in the future. Cuban believes NFT lands can be created as much as needed, negating the scarcity fundamental.

“It’s not even as good as a URL or an ENS [Ethereum naming service] because there are unlimited volumes that you can create,” he said during the YouTube interview, adding that he was not a fan of the Otherdeeds metaverse land that was sold by Yuga Labs, the startup behind the BAYC NFT collection even though the sales rakes in about $300 million.

“I still thought it was dumb to do the real estate. That was great money for them, but that wasn’t based on a utility,” he said.

Besides the regular critics of innovations linked to blockchain technology as a whole, Cuban comes off as one major proponent that has expressed negative reasoning to metaverse real estate. Brands like Warner Music Group, Atari, Samsung, and JPMorgan, amongst others who have acquired land in the metaverse, may think otherwise

Mark Cuban Slammed with Lawsuit for Endorsing Bankrupt Voyager Digital

Days after going tough on metaverse real estate, Mark Cuban, the billionaire owner of the basketball team Dallas Mavericks, has been slammed with a class action lawsuit for his role in promoting the bankrupt crypto platform Voyager Digital.

The class action suit was filed by the Moskowitz Law Firm in the United States District Court in Southern Florida and is demanding that Cuban, alongside Voyager Digital’s CEO, Stephen Erlich, and Dallas Mavericks pay back those who have suffered losses through the platform whom it said its products were paraded as a Ponzi scheme.

The lawsuit alleges that the business model of Voyager Digital was hinged on frequent promotions from Mark Cuban.

“Cuban and Ehrlich, went to great lengths to use their experience as investors to dupe millions of Americans into investing—in many cases, their life savings—into the Deceptive Voyager Platform and purchasing Voyager Earn Program Accounts (‘EPAs’), which are unregistered securities,” the lawsuit alleges.

He is known as one of the first Wall Street veterans to embrace digital currencies, and he is particularly known as a lover of Bitcoin (BTC) and Dogecoin (DOGE), a tag he competes with Elon Musk for. He took his advocacy to Voyager Digital, and per the lawsuit;

“Voyager Platform relied on Cuban’s and the Dallas Maverick’s vocal support and Cuban’s monetary investment in order to continue to sustain itself until its implosion and Voyager’s subsequent bankruptcy.”

Voyager Digital declared bankruptcy after halting withdrawals on its platform, a situation highlighting its disrupted business opportunity with the inability of Three Arrows Capital (3AC) to pay as much as $670 million it owed the company.

Considering its current woes, it is unclear how well the company will fare with this new lawsuit. Still, it is very focused on bringing succour to some of its customers, which is now necessary since the firm’s representatives advised against accepting the offer from FTX and Alameda Research.