Billionaire Mark Cuban explains why NFTs led him to be a crypto evangelist

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For billionaire investor Mark Cuban, there was a defining moment that led him to get into cryptocurrency.

“I have always paid attention to bitcoin, the price, the tokens and the [crypto]currencies,” Cuban told Miami Mayor Francis Suarez at the North American Bitcoin Conference on Monday. “But what really hooked me was about a year ago when I hit my first NFT.

NFTs, or non-fungible tokens, are unique digital assets. Minting an NFT is the process of transforming an asset into a token represented on the blockchain. This allows NFT owners to prove they own the asset and be able to sell it if they wish.

For Cuban, the opportunity to also earn royalties from secondary sales of his NFTs was huge.

“The fact that you can take a digital file – audio, video, photo, whatever – and not only monetize it to sell it, but also attach royalties to it, I’m like, ‘How can you do that? Because you can’t do that with anything physical,” the “Shark Tank” investor and Dallas Mavericks owner said.

After digging a little deeper, Cuban discovered smart contracts, which are collections of code that execute a set of instructions on the blockchain. Smart contracts are crucial for NFTs, as well as other crypto projects, such as decentralized finance or DeFi applications. “For me, it’s very disturbing,” he said.

“NFTs, although they’re hot right now and everyone’s talking about them, are really just a proof of concept of what you can do with smart contracts and decentralization,” Cuban said. in Suárez.

Now Cuban sees himself as a crypto “evangelist,” he said. He is extremely bullish on the space and has a cryptocurrency portfolio consisting of various digital coins, NFTs, and investments in numerous blockchain companies.

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

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