Dallas Mavericks owner Mark Cuban believes that cryptocurrencies, including Dogecoin (DOGE), are “evolving in real time” and their prices are now more a reflection of real demand than a bet on the future.
What Happened: Cuban, a big advocate of Dogecoin and other cryptocurrencies, said on Twitter that crypto is in the phase where users need to be educated, while products need to be sold and deliver on their initial promises.
See Also: How to Buy Dogecoin (DOGE)
Crypto is a product driven business. Each platform has to create demand for it's products/applications that outperform the non crypto equivalents. Like any business, it needs customers, sales and profits.
— Mark Cuban (@mcuban) May 15, 2021
The NBA owner noted that cryptocurrencies must have a current network effect and significant user growth to make an impact. Just having more transactions per second (TPS) and lower gas fees is not enough, the billionaire investor added.
However, marketing in the crypto universe is “beyond awful” with little being done to stress the impact governance can have on platforms, according to the “Shark Tank” fame investor.
See Also: Bitcoin Still Has Upper Hand Over Tesla Shares, Says Analyst Who Predicted Rise To $50K
Why It Matters: Cuban has supported Dogecoin while also acknowledging the cryptocurrency's joke origin. In March, the Dallas Mavericks began to accept the meme cryptocurrency as a means of payments for Mavs tickets and merchandise. Cuban revealed in April that Maverick’s sales in Dogecoin jumped up over 550% compared to the prior month.
Cuban said earlier this month that he believes Dogecoin has the potential to become a useful currency if more companies adopt the Shiba Inu-themed cryptocurrency for their products and services.
Interestingly, Cuban’s latest comments come after Tesla Inc. TSLA CEO Elon Musk said last week that the electric vehicle maker will no longer accept Bitcoin (BTC) for vehicle purchases due to concerns about the cryptocurrency’s environmental impact. Musk also said Tesla “was looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
Bitcoin has lost 8.6% during the past 24 hours and is trading at $44,003.78 at press time, while Dogecoin is down 10.3% and is trading at $0.4825 at press time.
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