The billionaire investor Mark Cuban said on Twitter that “Crypto is going through the lull that the internet went through.”
The owner of the Dallas Mavericks Mark Cuban compared the current state of the crypto industry with the dot-com bubble of the early 2000s.
Cuban noted “we saw the imitation phase as chains subsidized the movement of those apps to their chains,” while referring to the early rise of several innovative blockchain applications in the DeFi, NFT, and P2E industries.
He related the situation to the failure of over-hyped dot-com companies in the 2000s who offered bandwidth and storage subsidies, but eventually fell off.
Cuban added that there will be a ‘consolidation phase next’ where copycat blockchains will expire. “There will be blockchains that, rather than die, get acquired or merge,” he stated.
The Shark Tank judge sees lots of space for breakthroughs, particularly if commercial smart contract platforms eventually replace software as a service (SAAS).
Companies who employ smart contracts to boost efficiency and profitability will have a competitive advantage, according to Cuban. He tweeted “The chains that realize this will survive.”
When the internet was still in its beginnings in the 1990s, Cuban made his fortune by selling his computer consulting firm MicroSolutions, and then by selling his online radio company Broadcast.com to Yahoo for $5.7 billion in stock.
In January, Cuban stated that 80% of his non-Shark Tank investments are in the crypto sector. He also predicted that many new businesses inspired by the crypto economy would change traditional institutions such as banking and insurance.
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