Billionaire investor Mark Cuban took to Twitter to share his thoughts on the recent drawdown in crypto prices.
What Happened: “Crypto is going through the lull that the internet went through,” he said in a tweet on Monday.
Crypto is going through the lull that the internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we saw the imitation phase as chains subsidized the movement of those apps to their chains (ala bandwidth and storage subsidies by startups in the 2000s)
— Mark Cuban (@mcuban) May 9, 2022
According to Cuban, the initial surge of innovation across blockchains was followed by an “imitation phase” by new chains attempting to capitalize on DeFi apps, non-fungible tokens (NFTs) and Play-to-Earn (P2E) games.
Cuban believes that competing blockchains subsidized the movement of apps onto their networks in the same way that early internet startups attempted to copy existing platforms.
“The chains that copy what everyone else has, will fail. We don't need NFTs or DeFi on every chain,” he said.
The chains that copy what every one else has, will fail. We don't need NFTs or DeFi on every chain. We don't need bridges to move NFTs between chains (does this make it fungible?). We need Smart Contract apps replacing SAAS apps.
— Mark Cuban (@mcuban) May 9, 2022
This isn’t the first time Cuban has compared the crypto industry to the early days of the internet.
In a Next with Novo podcast in November, Cuban said that despite having his “fair share” of Bitcoin (CRYPTO: BTC), he is more of an Ethereum (CRYPTO: ETH) maxi.
See Also: HOW TO BUY ETHEREUM (ETH)
“We’re seeing a rush where there are lots of different blockchains that are competing,” he said at the time. “I don’t think all the L1s [Layer-1] are going to survive.”
Price Action: Bitcoin, Ethereum, and Dogecoin (CRYPTO: DOGE) saw a deep correction as a market-wide crypto crash ensued on Monday. At press time, BTC was trading at $31,800, down 5% over 24 hours.
Photo: Courtesy of Gage Skidmore via Flickr
