Shark Tank star and owner of NBA team Dallas Mavericks, Mark Cuban, said the next cryptocurrency implosion could result from “discovery and deletion of wash trades” on centralized exchanges. I warned you there is. The billionaire’s comments follow the collapse of crypto exchange FTX, which wiped out billions of dollars in customer funds.
Mark Cuban talks about the next crypto implosion
Shark Tank star and owner of the NBA team Dallas Mavericks, Mark Cuban, shared his thoughts on the next cryptocurrency implosion in The Street, published Friday. Billionaire said:
I think the next implosion possibility is the discovery and removal of wash trades on the central exchange.
“There are probably tens of millions of dollars in trading and liquidity for little-used tokens,” Cuban stressed. “I don’t know how it can be so liquid”
However, the Shark Tank star admitted: “There are no details I can provide to support my speculation.
Wash trading has long been a concern for cryptocurrency exchanges looking to inflate trading volumes. Wash trading is one of the manipulative activities prohibited by the U.S. Securities and Exchange Commission (SEC), and regulators around the world are increasingly cracking down on wash trading involving cryptocurrencies.
Kim Grauer, research director at blockchain analytics firm Chainalysis, said last September that wash trading in the crypto space is currently “trying to understand how this should be regulated and what is illegal and legal.” It’s a gray area,” he said.
The crypto industry is also struggling with the aftermath of the collapse of crypto exchange FTX, which filed for bankruptcy in November. Former FTX CEO Sam Bankman-Fried (SBF) has been indicted on multiple fraud charges.
Cuban said in November that if he were Bankman Freed, “I would be afraid to go to jail for a long time.” He stressed: The billionaire owner of the Dallas Mavericks has previously described the recent explosion in the crypto space, including the FTX implosion, as a “banking explosion” rather than a “cryptocurrency explosion”.
The Shark Tank star believes Bitcoin is a good investment. He called gold investors “stupid”. He also revealed that he is investing in crypto because he expects smart contracts to have a “major impact on the creation of valuable applications.”
Do you think Mark Cuban is right about the next crypto implosion through wash trading on centralized exchanges? Let us know in the comments section below.
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