The billionaire Mark Cuban warns of the next crypto implosion by Wash trades-selected Bitcoin messages
The billionaire Mark Cuban warns of the next crypto implosion by Wash trades-selected Bitcoin messages
Mark Cuban, a Shark tank star and owner of the NBA team Dallas Maverick, has warned that the next crypto-implosion could assume the "discovery and removal of wash trades" on centralized stock exchanges. The billionaire's comments followed the collapse of the FTX crypto exchange, which destroyed customer funds in billions in billions.
Mark Cuban at the next crypto-implosion
Shark tank star and owner of the NBA team Dallas Mavericks, Mark Cuban, shared his thoughts about the next crypto-implosion with The Street, which was released on Friday. The billionaire said:
I think the next possible implosion is the discovery and removal of Wash trades on central stock exchanges.
"There are supposedly tens of million dollars of trading transactions and liquidity for tokens that are used very little," emphasized Cuban. "I don't understand how they can be so liquid."
The Shark Tank Star, however, admitted: "I have no details to offer to support my assumption."
WASH trade has long been a problem with cryptocurrency exchanges that try to bloze out their trading volume. Wash trades are among the manipulative practices banned by Securities and Exchange Commission (SEC), and supervisory authorities worldwide are increasingly tough against Wash trading with cryptocurrencies.
Kim Grauer, research director of the blockchain analysis company Chainalysis, said in September last year that the wash trade in the crypto room is currently "a legal gray area in which we all try to find out how this should be regulated and what is illegal".
The crypto industry also suffers from the aftermath of the collapse of the crypto tour FTX, which has been requested bankruptcy in November. Former FTX CEO Sam Bankman-Fried (SBF) was charged with multiple fraud. However, he has not guilty about these charges.
The Cuban said in November if he were Bankman-Fried, he would have "fear in front of in Prison go for a long time. " He emphasized: "It certainly sounds bad." The billion-dollar owner of the Dallas Mavericks beforehand explained that the latest explosions in the crypto room, including the FTX implosion, were more "banking explosions" than "crypto explosions".
The Shark Tank-Star believes that Bitcoin is ; He called gold investors "stupid". He also revealed that he invested in crypto because he was awaiting that Intelligent contracts "have a significant impact on the creation of valuable applications".
Do you think that Mark Cuban is right when it comes to the next crypto implosion that comes from Wash trades on centralized stock exchanges? Let us know in the comment area below.
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