Billionaire investor and crypto bull Mark Cuban has not lost faith in digital currencies. Despite all the problems that have been occurring with FTX and the price of bitcoin, Cuban still feels that there’s a lot the space can offer.
Mark Cuban Remains Confident in Crypto
In a recent interview, he mentioned:
Separate the signal from the noise. There’s been a lot of people making a lot of mistakes, but it doesn’t change the underlying value.
He doesn’t think the space is in any danger of tanking given that so many people continue to invest in digital currencies and there are so many doors open to it. He admits that while FTX and other bad actors have delivered some wounds, he doesn’t think any of them are fatal. These are a few bad companies in a larger industry that is likely to last based on the power of the technology behind it.
Mark Cuban is currently the subject of a crypto-based lawsuit. Several investors of Voyager Digital – a firm that went bust in 2022 – say they lost all their life savings due to investing their money in the company, which Cuban had spent quite a bit of time promoting. They say they would not have placed their money into the company had Cuban not been their spokesperson. The suit also named Stephen Ehrlich, the former CEO of Voyager.
The lawsuit mentions:
Cuban and Ehrlich, as will be explained, 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. As a result, over 3.5 million Americans have now all but lost over $5 billion in cryptocurrency assets.
The bankruptcy of Voyager Digital happened as a direct result of the Terra Luna coin’s collapse in the summer of last year. Citing his faith in the digital currency market, Cuban wrote on Twitter:
A basic question. Why have I invested in crypto? Because I believe smart contracts will have a significant impact in creating valuable applications. I have said from day one [that] the value of a token is derived from the applications that run on its platform and the utility they create. What has not been created is an application that is ubiquitous. One that is obviously needed by everyone, and they are willing to go through the learning curve to use. Maybe it never comes. I hope and think it will.
Crypto Is Like Streaming Music
He also said that the crypto industry is a lot like the streaming industry, saying:
The best analogy I can use is the early days of streaming. The sh*t people had to do to listen to a 16K stream of music was insane.