The billionaire American tycoon Mark Cuban, in a series of tweets, has expressed himself on the crypto world during its darkest hour, comparing it to the Dot Com sector.
After the great collapse that has affected the stock exchanges and also the world of cryptocurrencies, the owner of the Dallas Mavericks has decided to turn the spotlight on the phase that the platforms in the crypto world are going through.
Crypto compared to the Dot Com period
Too many cryptocurrencies and too many projects in an ecosystem that is not yet fully consolidated. Many of them will disappear according to Mark Cuban
According to the tycoon, much like during the Dot Com bubble between 1997 and 2001, current platforms and cryptocurrencies are heading towards a “natural” selection that will lead to the survival of some and the disappearance of others.
Analysts and investors all over the world had believed in these companies by investing huge amounts of money. However, there was a sudden collapse when it became evident that stock values were dictated more by euphoria than by the real value of Dot Com companies.
The race was to grow the number of users who used the services of a certain company, while other smaller companies disappeared.
That’s what is happening today as well: everyone offers everything, in a tight struggle for dominance and for the increase of the user base, which sooner or later will necessarily come to a stop.
The crypto world needs smart contracts that allow to offer certain services like the fluidity to move NFTs from one platform to another or the compatibility of DeFi services between platforms.
Who is Mark Cuban?
The American entrepreneur made his fortune in the 1990s and knows well the phase to which he compares the crypto sector.
The net worth of the entrepreneur is estimated to be around 4.7 billion US dollars, also thanks to the sale of some companies attributable to him during those Dot Com years.
Among the companies sold after being launched by the tycoon there are Micro Solutions and Broadcast.com, which was later purchased by Yahoo.
Recently, Mark Cuban‘s investments have been moving strongly towards crypto, like OpenSea, CryptoSlam and SuperRare. Cuban expressed himself on Twitter like this:
“The Crypto world is going through the hiatus that went through the internet” and again “we have witnessed the imitation phase when the chains subsidized the movement of those apps to their chains. The chains that accomplish this will survive. Chains that copy what everyone else has will fail. We don’t need NFT or DeFi on every chain. We don’t need bridges to move NFTs between chains (does this make it fungible?). We need smart contract apps to replace SAAS apps”.
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