5 crypto projects mark Cuban loves

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Entrepreneur Mark Cuban may have arrived relatively late to the crypto night, but he certainly made his presence felt.

Cuban is a big fan of non-fungible tokens (NFT) and decentralized finance (DeFi) applications. Both are powered by smart contracts – small pieces of self-executing code that live on the blockchain.

NFTs are a type of digital collection that uses smart contracts to store authorship and copyright information. DeFi encompasses a multitude of financial services applications. These apps use smart contracts to, for example, issue loans or insurance policies without involving a bank or other third party.

The billionaire and owner of Dallas Mavericks spends three to four hours a day browsing crypto projects, but selects only a few to invest in. Here are some of his favorite projects.

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1. Polygon

Polygon (MATIC) is a blockchain that relies on the Ethereum (ETH) network to improve its scalability and network performance. Ethereum is a popular programmable blockchain, but it has recently struggled with network congestion and high fees.

In a recent blog post, Cuban explains why he loves Polygon. He thinks the way crypto projects use third parties to provide the necessary computing power is awesome. Where non-crypto companies may need a lot of capital to host servers and pay for IT costs, projects like Polygon use token holders who earn rewards for their participation – requiring minimal capital.

“If Polygon, or any of its competitors, had chosen a traditional, centralized trade route where they controlled and owned everything,” Cuban says on his blog, “they should have raised not only millions, but potentially many, many more. “.

2. Aave

Aave (AAVE) is a DeFi lender controlled by smart contracts. Cuban explains on his blog: “Aave is a fully automated and unauthorized platform where there are no bankers, no buildings, no toasters, no safes, no cash, no money custody, no forms to fill out, no credit scores involved. “

Aave borrowers must deposit crypto collateral to take out a loan. And crypto investors deposit money, which is then loaned out. In doing so, they will earn higher returns than they would get with a traditional savings account. (Although there are heightened risks as well.) The industry is still in its infancy, but Cuban believes this is the way to go. “Banks should be afraid,” he said.

3. Zapper.fi

Cuban invested in Zapper in May when the company staged a $ 15 million funding round. It is a digital management tool that allows investors to manage all of their crypto assets in one place. Let’s say you have deposited crypto with Aave or have tokens staked with multiple cryptocurrency exchanges. (Staking is when you tie up your coins to earn interest.) It can be difficult to keep track of your entire portfolio and know which coins are earning interest on which exchange. Zapper lets you see everything in one place.

Moreover, you can use it to manage your investments. For example, you could own Ethereum and see that you could earn 15% APR on an ETH-MATIC pair with SushiSwap (a popular decentralized crypto exchange). With Zapper, you wouldn’t need to go to the SushiSwap site or convert part of your ETH to MATIC. Zapper will do everything for you.

4. Lazy.com

Lazy.com plays with Cuba’s other crypto passion: NFTs. It is a digital gallery where users can show the NFTs they own. Cuban kicked off the project – which is still in beta – for digital art collectors earlier this year.

If you have NFTs, it’s easy to create an account and connect your wallet. You can then post a link to your art collection on social media or share it with your friends.

5.dClimate

It is one of Cuba’s most recent investments. The billionaire announced in June that he was involved in the project as both an investor and an advisor.

For smart contracts to work, they need information. For example, a farmer can get an insurance policy that automatically pays for certain weather conditions. The smart contract would need reliable data to trigger a payment. This is where data providers like dClimate (also known as oracles) come in.

dClimate collects and standardizes climate data, creating a decentralized platform for businesses that need accurate weather forecasts and information.

Do your own research

Mark Cuban’s investments provide insight into the range of cryptocurrency projects currently available as well as specific areas he’s excited about. But Cuban also strongly believes in the importance of doing your own research and investing in projects that interest you.

Cryptocurrencies can be risky and volatile investments, and only you know your financial situation, interests, and risk tolerance. So don’t buy into these projects just because Mark Cuban did. Follow his lead and make sure you understand any project before investing in it.

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