Billionaire Mark Cuban Warns of Coming Crypto Implosion From Wash Trades – Featured Bitcoin News

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Mark Cuban, a Shark Tank star and the owner of NBA team Dallas Mavericks, has warned that the next crypto implosion could come from “the discovery and suppression of washout transactions” on centralized exchanges. The billionaire’s comments followed the collapse of crypto exchange FTX which wiped out billions of dollars in client funds.

Mark Cuban on the next crypto implosion

Shark Tank star and NBA Dallas Mavericks owner Mark Cuban shared his thoughts on the upcoming crypto implosion with The Street, published Friday. The billionaire said:

I think the next possible implosion is the discovery and removal of washout trades on central exchanges.

“There are supposedly tens of millions of dollars in transactions and cash for tokens that have very little use,” Cuban pointed out. “I don’t see how they can be so liquid.”

However, the Shark Tank star admitted, “I have no details to offer to back up my guess.”

Wash trade has long been a concern of cryptocurrency exchanges trying to inflate their trading volumes. Sham trades are among the manipulative practices banned by the Securities and Exchange Commission (SEC), and regulators around the world are increasingly cracking down on sham trades involving cryptocurrencies.

Kim Grauer, research director at blockchain analytics firm Chainalysis, said in September last year that washing trade in the crypto space is currently “a legal gray area where we’re all trying to figure out how this should be regulated and what is illegal”.

The crypto industry is also suffering the consequences of the collapse of crypto exchange FTX, which filed for bankruptcy in November. Former FTX CEO Sam Bankman-Fried (SBF) has been charged with multiple counts of fraud. However, he pleaded not guilty to those charges.

Cuban said in November that if he were Bankman-Fried, he “would be scared of going to jail for a long time.” He pointed out, “That sounds really bad.” The billionaire owner of the Dallas Mavericks previously explained that recent explosions in the crypto space, including the FTX implosion, were “banking explosions” rather than “crypto explosions”.

Shark Tank star thinks bitcoin is a good investment; he called gold investors “dumb”. He also revealed that he invests in crypto because he expects smart contracts to “have a significant impact on creating applications of value.”

Do you believe Mark Cuban is right about the upcoming crypto implosion from washout transactions on centralized exchanges? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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