Shark Tank billionaire investor, Mark Cuban, says the crypto bear market won’t be over soon. He stated that the market will keep being bearish till applications focus on usability. He equally does not think the market got cheap prices.
Personal High Stakes Hang in the Market
Cuban revealed that close to 80% of his portfolio outside Shark Tank is in crypto. Cuban was asked how long he thinks the bear market will extend. Speaking on the Bankless Podcast, he said it last till there is a catalyst.
He explained that the catalysts will be an application or it gets to the lowest. He thinks that focusing on applications with better utility will pull crypto up. Launching a business-focused app will ignite a market reversal, Cuban said.
While stating Quickbooks as an example, he predicted users rush if something like that launches. Quickbook is software for accounting management.
Many analysts in the crypto space say Bitcoin and other coins have bottomed. Cuban is, however, of an opposing opinion. He said those assets are not cheap yet as he analyzed their high market capitalization.
In his words, he said everyone should look at the market capitalization of various projects. He said their capitalizations are in billions of dollars. No one looks at that and calls such a market cheap.
Cuban cited the example of the DeFi summer as he analyzed. He said they sold for less than a penny. Then also, their market caps ran into hundreds of millions.
Utility Problems Everywhere
He added that even cryptos with lower market caps don’t have utility in their applications. He cited SushiSwap token as an example of a relatively cheap asset. Its market cap is $215 million.
Cuban, however, added that you paid SUSHI if you provide liquidity. But then, almost no one is going to buy it from you. As there is practically no reason to.
Furthermore, Cuban thinks mergers between protocols will bring about a crypto industry consolidation. He said that is what happens in every other industry.
The billionaire said he would rather be up with someone who says to do things together. He said blockchains should merge, close some and move apps and communities to just one. Those existing should then give tokens to closed ones so they can import their users.
Among the crypto subsectors, Cuban said he is more interested in carbon offset DeFi tokens. He claimed that he burns them to offset his carbon footprints.