Mark Cuban, billionaire investor and owner of the Dallas Mavericks, took to Twitter yesterday to share his thoughts on the recent negative trends in crypto prices and how it compares to the dot-com bubble of early 2000.
In his tweet, he stated, “Crypto is going through the lull that the internet went through.”
According to him, the initial surge that resulted from innovation across blockchains, which included the creation of multiple blockchain applications, DeFi and NTFs, was followed by an “imitation phase” as chains subsidized the movement of these apps onto their chains.
Cuban claims that competing chains subsidized app migration onto their networks in the same way early internet companies tried to replicate existing platforms and further compared the recent trends to the fall of the same overhyped dot-com enterprises that offered similar services.
However, he sees plenty of room for advancements, particularly in the use of commercial smart contracts to improve business profitability and productivity.
He believes businesses can use smart contracts to gain a competitive edge in the market, stating that chains that recognize this early will survive.
Additionally, the prevailing imitations among blockchains did come with a consequence as it has resulted in an inevitable crypto lull, but chains that deal with this early will thrive.
Furthermore, in his tweet, he stated that blockchains that copy what others have created will most likely fail and also expressed his displeasure at having NFTs and DeFi on many blockchains, saying what we need as of now on is smart Contract apps replacing SAAS apps.
The chains that copy what everyone else has, will fail. We don’t need NFTs or DeFi on every chain. We don’t need bridges to move NFTs between chains (does this make it fungible?). We need Smart Contract apps replacing SAAS apps.
Mark Cuban’s comments came on Monday as the broader crypto market is currently in a steep downturn, with bitcoin prices falling below $30,000 for the first time since July 2021. Also, this isn’t the first time the billion has compared the cryptocurrency industry to the bitcoin industry in the early days of the internet.
