Mark Cuban says 80% of his non-‘Shark Tank’ investments are in crypto

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Billionaire Mark Cuban mainly invests in cryptocurrency these days.

“The investments I’m making now aren’t in traditional businesses,” Cuban said on a recent episode of “The Trouble With Jon Stewart” podcast. In fact, “80% of the investments I make that aren’t on ‘Shark Tank’ are in or around cryptocurrencies.”

One type of organization in particular has caught the attention of Cubans: decentralized autonomous organizations, or DAOs. “That’s really where I’m looking to invest,” he said.

In theory, a DAO is a blockchain-based collective that is not governed by one person or entity. Any changes to the rules or governance of the DAO must be voted on by its members. To obtain these voting rights, as well as other powers within the organization, investors typically hold the governance tokens of the DAO.

“All of these new companies are being formulated and taking this new approach,” said Cuban, ABC Shark Tank investor and owner of the Dallas Mavericks. He added that there will be “game-changing companies” that come from these types of organizations.

In particular, he predicts that sectors such as banking and insurance will “change”, thanks to these new technologies.

Cuban is also bullish on smart contracts, which are collections of code that execute a set of instructions on the blockchain and power decentralized applications. Smart contracts are instrumental in forming DAOs, as well as powering other crypto projects, such as decentralized finance, or DeFi, non-fungible apps and tokens, or NFTs.

But DAOs and their governance tokens can be risky bets for investors. Financial experts warn to invest only what you can afford to lose, as they view cryptocurrency as a volatile and speculative investment.

Nevertheless, this positive outlook is not particularly surprising from Cuban, who has always been open about his belief in smart contracts. Cuban is a passionate investor in the crypto space, with a cryptocurrency portfolio comprised of various digital coins, NFTs, and investments in numerous blockchain companies.

But even Cuban is realistic about the booming industry. He referred to the space as a casino cryptocurrency because it is still so new. “It’s like the early days of the internet,” he told Stewart. “The exact same thing is happening now. It’s 1995 for cryptocurrencies.”

“That doesn’t mean there aren’t a lot of problems,” Cuban continued. Cryptocurrency “is hard to understand and it’s a problem. But in 10 years, there will be those who are successful who will create their own economy.”

Disclosure: CNBC has exclusive off-network cable rights to “Shark Tank.”

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