Billionaire investor Mark Cuban has got opinions, with one purchasing digital currencies with genuine utility value, claiming that the price of tokens is the least significant and the least interesting component of cryptocurrencies.
He also stated in an interview with Benzinga that regulation of cryptocurrencies should be "optional," with the possibility of a limited listing over-the-counter (OTC) and as Pink Sheets.
Pink Sheet-listed companies are companies that are not listed on a major exchange such as the New York Stock Exchange (NYSE) or the Nasdaq.
Pink Sheet-listed stocks trade over-the-counter, which means the stocks are traded through a broker-dealer network.
Token Price Speculation Too High
“I don't think anyone should speculate on tokens. I think they should look at what applications they use and buy tokens to use for those applications. There is far too much token speculation. The pricing of tokens is the least interesting and least important aspect of crypto," the billionaire Dallas Mavericks owner said.
“Being able to do things that you can't do without crypto like smart contracts enabled apps like DeFi and NFTs and being able to buy carbon offsets or insurance and hopefully future impactful apps, are what makes tokens important,” he added.
Cuban Seeks Regulations of Cryptos Under CFTC
The avid crypto advocate also sought optional regulations of digital currencies, ideally by the Commodity Futures Trading Commission (CFTC).
“There are tens of thousands of equities that have the option of possibly registering with the NYSE or NASDAQ or doing a minimal listing with OTC and Pink sheets. The same options should be available to tokens,” Cuban said.
Replying to a query about his views on the future of the metaverse, Cuban said purchasing property in the metaverse was the "biggest mistake" anyone could make as there might be an infinite number of virtual worlds that would not be necessarily linked among themselves and there were no standards metaverses adhere to.
“This means that it's relatively cheap to create an unlimited number of plots of lands across an unlimited number of metaverses across an unlimited number of blockchains,” he said.
Current Market Rally Driven by Anticipation Over Ethereum Merge
Ethereum (CRYPTO: ETH) is expected to transition from the energy-intensive, proof-of-work consensus to a more energy-efficient proof-of-stake mechanism, known as the Ethereum Merge, in the week of Sept. 19, after completing two testnets in advance of the event.
Cuban said one of the probable explanations for the recent upswing in the cryptocurrency market is the anticipation around the Ethereum Merge.
“People look for a lot of reasons to buy in a momentum-driven market. What the actual impact will be is unknown to everyone. It's a guess,” Cuban said.
Ethereum Prices More Than Double From mid-June Lows
The price of cryptocurrencies, especially Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), have significantly recovered in July after falling as much as 75% from their all-time highs in November 2021.
From their mid-June lows, Bitcoin and Ethereum have gained 36% and 102%, respectively.
Photo: Kathy Hutchins via Shutterstock
