Shark Tank star and billionaire investor Mark Cuban recently told his over eight million followers on Twitter that crypto is going through a similar phase as the internet did during the early 2000s when innumerable startups with little to totally no utility got in over their heads.
As specified in The Daily Hodl report, bitcoin is down more than seven percent in the last 24 hours in yet another week of strong losses and Cuban said the pain might just be "getting started for crypto markets."
The billionaire also said that the crypto industry, in specific smart contract platforms, should begin focusing on how to enhance business models to justify some of its large valuations.
Crypto is going through the lull that the internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we saw the imitation phase as chains subsidized the movement of those apps to their chains (ala bandwidth and storage subsidies by startups in the 2000s)
— Mark Cuban (@mcuban) May 9, 2022
He continued explaining that crypto is experiencing the lull that the internet had gone through. Following the initial surge of exciting apps such as DeFi, NFTs, P3E, or play-to-earn, the limitation phase is seen as chains subsidized those apps' movements to their chains, a la bandwidth and storage subsidies by startup cryptos in the 2000s.
ALSO READ: Time for Facts: 5 Popular Misconceptions About Cryptocurrencies
Mark Cuban, owner of the Dallas Mavericks looks on prior to a game between the Dallas Mavericks and Detroit Pistons at Arena Ciudad de Mexico on December 12, 2019, in Mexico City, Mexico.
'Die-Off'
What has not been seen, he explained, is the use of smart contracts, which is detailed in an IBM report, to enhance both the business productivity and profitability.
That then will need to be the next driver. When businesses can employ smart contacts to gain a competitive edge, they will. The chains that will have this realized are going to survive.
The owner of the Dallas Mavericks, Cuban said that the digital asset ecosystem has become crowded, with a lot of projects providing the same sales pitch as everything else. He thinks the so-called "copycats" minus distinctive utility and product-market fit will eventually die off as the hype wanes.
The chains that duplicate what everyone else has, he explained, "will fail." There's no need for NFTs or DeFi on each chain. There's no need for bridges either, to move NFTs between chains. There's a need instead, for smart contract apps, substituting software as a service. apps.
Smart Contract Ecosystem
In terms of utility, the billionaire investor has been vocally bullish on Ethereum, and platform Polygon (MATIC), its largest scaling solution.
Describing smart contract ecosystems, Cuban said that they, like Ethereum, are where the real upside opportunities lie.
These, he elaborated, are tokens that have Ethereum similar to Ethereum. They have these things also known as "contracts" and they enable one to trade different things, be it non-fungible tokens or NFTs, insurance contracts on Ethereum, there is only an assortment of things.
Smart Contracts Similar to the Internet
That's where he thinks the true upside is. That is the reason he owns a ton of Ethereum and Polygon (MATIC), said Cuban, as smart contracts like JavaScript or HTML for the internet. One can develop applications.
Essentially, NFTs are one version of the applications, and they're beginning to see others such as textbooks turned into NFTs, and songs, music, and movies, also turned into NFTs, which is described in an EU Business School report.
Lastly, anything digital can utilize a smart contact to turn into an NFT, that is where "the real upside is," the popular businessman ended.
Related information about crypto's mass die-off is shown on Moon Lambo's YouTube video below:
READ ALSO: Hackers TRICKED a Tesla: The Race to Fooling Artificial Intelligence
Check out more news and information on Technology in Science
