On June 15, Fortune reported that Ethereum maximalist Mark Cuban, stated crypto collapse, reminds him of Warren Buffett’s advice: “When the tide goes out, you get to see who is swimming naked.” The cryptocurrency market is seeing a wave of failed and struggling projects in the midst of a rough downturn that has investors worried about what’s to come.
Since the Terra ecosystem collapsed, there has been a ripple effect throughout the space, with unsuccessful algorithmic stablecoin TerraUSD (UST) and cryptocurrency Luna (LUNC) becoming nearly worthless. On June 12, due to extreme market conditions, Celsius froze all withdrawals, swaps, and transfers between account. Celsius Network, a blockchain-based marketplace platform, took this step to ensure that it can meet its future withdrawal obligations.
It has also been reported that Three Arrows Capital, a prominent cryptocurrency fund, is experiencing financial ruin after $400 million in liquidations. The global cryptocurrency market value fell below $1 trillion, with Bitcoin, the largest cryptocurrency by market value, falling to $20,193 and Ether, the second largest, falling to $1,023.
Mark Cuban told fortune that:
“Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed.”
He claims that cryptocurrencies are linked to the Nasdaq, which has recently proven to be true. For example, tech stocks and Bitcoin have recently surged in lockstep. The Nasdaq 100 and Bitcoin’s correlation was recently around all-time highs.
Cuban stated:
“If rates go up, it will struggle till it’s priced in. The exception, as with stocks, is for new, game-changing applications.”
Read more:
Mark Cuban compares current crypto situation with Internet in early 2000s
