Here's Why Mark Cuban Still Believes In Crypto Despite FTX Breakdown

Mavericks owner and investor Mark Cuban still believes in crypto, even though the entire cryptocurrency market is reeling under the FTX collapse.

His optimism is based on the key underlying technologies that allow crypto transactions to be made, known as smart contracts. 

A basic question. Why have I invested in crypto? Because I believe Smart Contracts will have a significant impact in creating valuable applications. I have said from day 1, the value of a token is derived from the applications that run on its platform and the utility they create

— Mark Cuban (@mcuban) November 13, 2022

Cuban says that smart contracts will be a great tool in creating valuable applications for everyone in the crypto market. 

What has not been created is an application that is ubiquitous. One that is obviously needed by everyone and they are willing to go through the learning curve to use. Maybe it never comes. I hope and think it will

— Mark Cuban (@mcuban) November 13, 2022

According to Cuban, the recent crypto turmoil due to the FTX fiasco is an example of banking blowups, not crypto blowups. 

These blowups have not been crypto blowups, they have been banking blow-ups. Lending to the wrong entity, misvaluations of collateral, arrogant arbs, followed by depositor runs. See Long Term Capital, Savings & Loan and Sub-Prime blowups. All different versions of the same story https://t.co/Go10AxeWZ8

— Mark Cuban (@mcuban) November 12, 2022

Talking about the FTX collapse, Cuban has said, "With FTX now — that's somebody running a company that's just dumb as f**k greedy."

Cuban has said that 80% of his non-"Shark Tank"-related investments are focused on and around cryptocurrencies.

In a recent interview, Cuban spoke about what he thinks would be the next big thing for the crypto industry. 

According to him, non-fungible tokens (NFTs) present a massive opportunity in the book industry.

Cuban holds Ethereum ETH/USD, Bitcoin BTC/USD, and several small-cap altcoin tokens.