Mark Cuban, a Shark Tank star and the proprietor of the NBA team Dallas Dissidents, has warned that the following Crypto collapse could come from “the discovery and expulsion of wash trades” on centralized exchanges. The tycoon’s comments followed the collapse of Crypto exchange FTX which cleared out billions of dollars of customer funds.
Mark Cuban on the Following Crypto Collapse
Mark Cuban on the Following Crypto Collapse Shark Tank star and the proprietor of the NBA team Dallas Mavericks, Imprint Cuban, shared his contemplations on the following crypto collapse with The Road, published Friday. The billionaire said:
“I think the following conceivable collapse is the discovery and expulsion of wash trades on central exchanges.”
“There are supposedly a huge number of dollars in trades and liquidity for tokens that have next to no utilization,” Cuban stressed.
“There are supposedly a huge number of dollars in trades and liquidity for tokens that have next to no utilization,” Cuban stressed. “There are supposedly a huge number of dollars in trades and liquidity for tokens that have next to no utilization,” Cuban stressed.
However, the Shark Tank star conceded: “I bring no particulars to the table to help my conjecture.”
Wash trading has for quite some time been a concern with Cryptocurrency exchanges attempting to inflate their trading volumes. Wash trades are among the manipulative practices disallowed by the Securities and Exchange Commission (SEC), and regulators overall are progressively taking action against wash trading including Cryptocurrencies.
Kim Grauer, director of research at blockchain analytics firm Chainalysis, said in September last year that wash trading in the Crypto space is presently “a legal gray area that we as a whole are attempting to sort out how this ought to be regulated and what’s illegal.”
The Crypto industry is also experiencing the aftermath of the collapse of Crypto exchange FTX, which filed for bankruptcy in November. Previous FTX CEO Sam Bankman-Fried (SBF) has been accused of multiple counts of misrepresentation. However, he has argued not blameworthy to those charges.
Cuban said in November that assuming that he were Bankman-Fried, he would “fear going to prison for quite a while.” He pushed: “It sure sounds terrible.” The billionaire proprietor of the Dallas Mavericks recently made sense of that new blowups in the Crypto space, including the FTX collapse, were “banking blowups,” rather than “Crypto blowups.”The Shark Tank star believes that bitcoin is a wise investment; he referred to gold investors as “moronic.” He also uncovered that he invests in Crypto in light of the fact that he anticipates that smart contracts should “have a critical effect in creating valuable applications.”
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