Billionaire Mark Cuban, owner of NBA team Dallas Mavericks and investor of Shark Tank, came up with new comments about cryptocurrencies. Citing a particular development in centralized exchanges, Cuban explained that the next crypto “boom” will happen. Here are the details…
Crypto billionaire says 2023 will also be full of scandals
According to billionaire Dallas Mavericks owner and crypto investor Mark Cuban, cryptocurrency “wash-trade” on centralized exchanges will be the cause of the next crypto “boom.” In an interview with The Street on January 5, the billionaire investor said that after the numerous fiascos that shook 2022, 2023 will not be left behind from crypto scandals. cryptocoin.com Cuban, who, as we reported, supports several crypto and Web3 startups, said he believes the next biggest thing to impact the industry will be “discovery and removal of wash trades on centralized exchanges.” Cuban used the following statements:
There is supposedly tens of millions of dollars of trade and liquidity for tokens that have little use. I don’t understand how they are so liquid.
Illegal under US law, a “wash trade” is a process in which a trader or bot buys and sells the same crypto asset to provide misleading information to the market. The goal is to artificially inflate volumes so that retail traders rush to the asset in question and raise prices. In essence, it’s a “pump and dump” move. “I don’t have any details I can offer to support my guess,” Cuban said, saying he was only making a guess.
Cuban stands out for defending Bitcoin
Despite wash trading and various scandals, Cuban has always defended Bitcoin. In the December 26 episode of Bill Maher’s Club Random podcast, Mark Cuban argued that Bitcoin is a better store of value than gold. In response to Maher’s open admission that he is “against Bitcoin,” Cuban said, “I want Bitcoin to drop further so I can get some more.” Also, Cuban told Maher, “If you have gold, you are stupid.”
Bitcoin and NFT trading also have wash trading alert
According to a report released by the National Bureau of Economic Research (NBER) in December, 70 percent of the volume on unregulated exchanges is impulse buying. The researchers used statistical and behavioral models to determine which transactions were legitimate and which were fraudulent. Also, a 2022 study by Forbes on 157 centralized exchanges revealed that more than half of Bitcoin trading volumes are fake.
However, wash trading is not limited to centralized exchanges only. On January 5, Mati Greenspan, CEO of Quantum Economics and former eToro senior market analyst, said that 42 percent of all NFT volume is wash trades. Wash added that the trade was also used to collect tax losses, giving (to the tax officer) the impression of a greater loss than it actually was.