Mark Cuban still thinks there's value in the space, but he thinks the asset class's rise in 2021 looks like it was all noise.
He said last year's bull run led to cryptocurrencies becoming overvalued before signs of stress in the industry could pop that bubble.
Cuban told "The Problem with Jon Stewart" that there was a signal and noise. The majority of it was noise. There's a signal there.
Cuban, the owner of the Dallas Mavericks NBA team and "Shark Tank" investor, spoke Monday as a brutal year for digital assets draws to a close.
Since January, the price of the world's most popular digital currency has plummeted to less than $18,000, and it's down 75% from its all-time high. The value of the market is low.
The collapse of Terra and Three Arrows Capital was due to the potential instabilities in the digital asset sector, as a result of thecryptocurrencies selloff. The founder of now-bankrupt FTX Bankman- Fried was arrested in the Bahamas last week and is facing fraud charges in the US.
Cuban talked about the collapse of WorldCom MCI during the tech stock selloff.
He said it took a couple of frauds to pop a financial bubble. It was taken by WorldCom MCI.
He said that it's going to take what they saw with Sam and Terra and Luna.
The billionaire investor believes that the sector can only do that if there is more transparency and regulatory oversight.
John Ray III, the new CEO of FTX, said that the exchange misstated the value of its holdings and that most of its balance sheet is hidden.
Cuban said that there will be fraud where there is lack of transparency. It comes down to who is willing to keep the kimono open.
It's easier to analyze because it's digital. As long as we don't have transparency, SBF can do what he did.
Cuban previously said he would accept joke token doge coin as a method of payment for Dallas Mavericks merchandise and tickets. The NBA franchise in Texas has been owned by him for over a decade.
The industry is struggling to ever regain investors' trust.
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