Mark Cuban, the owner of the Dallas Mavericks and a billionaire crypto investor, says the current market collapse reminds him of a Warren Buffett proverb. The rise and collapse of crypto markets and initiatives, according to Cuban, are similar to the saying of the 91-year-old ‘Oracle of Omaha,’ “Only when the tide goes out do you learn who’s been swimming nude.” Cuban made the statement during a June 16 interview with Fortune, in which he explored what he considers to be faulty business models in some crypto companies that have struggled in recent months.
Terra, Celsius, and Three Arrows Capital were among the businesses that appeared to be swimming naked.
If the recent halting of withdrawals is any indication, the Celsius staking and lending platform is struggling to stay afloat. Three Arrows Capital, an investment firm, is said to have faced a $400 million liquidation after failing to pay margin calls.
By the middle of May, the Terra environment, now known as Terra Classic, had entirely collapsed. Investors have lost tens of billions of dollars as a result of the collapse, and many regulatory organizations have launched a manhunt for the company’s founder and CEO, Do Kwon.
Despite the bleak short-term picture for crypto, Cuban believes that downturns have a purifying impact on markets, and that this time will be no different for crypto.
Marc Lasry, CEO of Avenue Capital Group, is even more pessimistic about the financial markets. On Bloomberg TV, he forecast that the suffering in the economy as a whole will last until the end of 2022, with equity indices falling another 10%. Lasry, on the other hand, feels that the US economy is robust enough to keep the current dip brief.
