Mark Cuban, an endorser of crypto, predicts that 99 percent of tokens will go broke but sees a prosperous future for those that survive.
In a latest Twitter exchange with former Securities and Exchange Commission (SEC) official John Reed Stark, the American entrepreneur and philanthropist Mark Cuban predicted that 90 percent of blockchain companies will go broke.
In the same vein, he indicated that 99 percent of tokens would go broke but that those that survive will become “game changers” in the tech industry.
Now we are talking tech. You are in my space John. I don’t comment. I do. My entire career has been people telling me why the companies I started were ridiculous and not needed. Until they found themselves using them.
Smart contracts are about 6 years old. Maybe the name… https://t.co/da2zEvjtHU
— Mark Cuban (@mcuban) June 15, 2023Cuban compared his forecast to the demise of the first Internet companies. The conversation between Mark and John Reed Stark began when the former SEC official shared a post about the Binance/SEC court proceeding.
Both the dominant digital asset service provider and the regulator were instructed by United States District Judge Amy Berman Jackson to attempt to reach an agreement without her interference. She did not wish to rule directly on the SEC’s request for a provisional restraining order, which could result in the freezing of Binance’s U.S. assets.
In response to Stark’s tweet, a cryptocurrency enthusiast with the handle @_someone_els suggested that Judge Jackson may have yet to receive a precise definition of which crypto assets qualify as securities.
However, Stark swiftly dispelled the misconception, directing the individual to an earlier tweet he had published. Cuban immediately drew the former SEC official’s attention to the possibility that he had misinterpreted Judge Jackson’s significance.
Mark Cuban Reaffirms His Pro-Crypto Position
Cuban began his argument by establishing that not all crypto businesses with tokens or contemplating using tokens are large corporations. According to Cuban’s statement, there is a widespread belief that they all are.
He described a time when a small company representative sought clarification and registration advice from the SEC. The SEC responded, “Here are some cases to review, get a lawyer to help you.”
From there, their conversation progressed to Stark’s assertion that blockchain would never triumph over traditional databases. However, Cuban was unconvinced, emphasizing that technology always produces game-changers regardless of who is eliminated. In conclusion, the proponent of Dogecoin stated:
While many of your criticisms of crypto are legitimate, they do not invalidate the economic impact the industry can have.
