People have been frantic after the collapse of the Terra ecosystem. Coinbase announced an 18% layoff this week, and Celsius Network halted withdrawals. Billionaire Mark Cuban believes companies without reasonable prospects will disappear, but after the bear market, many will succeed.
“In stocks and crypto, you will see companies that were sustained by cheap, easy money—but didn’t have valid business prospects—will disappear. Like Buffett says, ‘When the tide goes out, you get to see who is swimming naked.'”
Despite the fear in the market, Cuban believes the crypto community will prevail after the bear market.
“Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed.”
“If rates go up, it will struggle till it’s priced in,” Cuban explained. “The exception, as with stocks, is for new, game-changing applications.”
Cuban is a self-proclaimed Ethereum maximalist and crypto investor who holds a few different currencies and NFTs and is invested in blockchain companies.