Traded tokens the “least important part of crypto,” according to Mark Cuban
The focus must be on the benefits of the crypto project
Crypto fan Cuban: Useful tokens can be “treated like stocks”
Mark Cuban is a dedicated crypto fan and, according to “CNBC”, owns an investment portfolio with various digital coins, NFTs and shares in blockchain companies. When investing, however, he does not primarily look at the respective tokens, as he recently revealed on Twitter: “The traded tokens are the least important part of crypto,” the investor replied to the critical comment of another user who denied cryptocurrencies any value . Instead, according to Cuban, the crypto industry is about being able to create businesses on decentralized platforms using smart contracts, Decentralized Autonomous Organizations (DAOs) and more, which can lead to more efficient business processes and disruption in the industries.
Tokens trading are the least important part of crypto. Being able to create businesses on decentralized platforms leveraging smart contracts, validators, DAOs and more, create a unique ability to offer more efficient biz processes and disrupt industries. https://t.co/qHrse3S7fQ
– Mark Cuban (@mcuban) January 11, 2022
Accordingly, the billionaire confirmed in an interview with “CNBC” that with every investment in the crypto sector he looks at the benefits of the respective project. He recommended this to every other investor as well, as “this is where the value is generated”.
“When I look at the crypto industry, I look at it as an entrepreneur and wonder how any combination of smart contracts, decentralization, security and economics make it possible to do business in a better way and create opportunities,” Cuban said own procedure a day later again on Twitter. He only invests if he can actually see such a benefit.
Value of a crypto token through use in applications
In another tweet, Cuban laid out his perspective in a little more detail. Tokens could be valued like stocks if they accumulated value through the utility their platform generates. As an example, the well-known investor cited Ethereum, which is used as a token to conduct transactions on the Ethereum blockchain or in the Ethereum network, on which many DeFi applications and NFTs are based. – Trade bitcoin with Plus 500 – how it works. 72% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you can afford to take the high risk of losing your money. – As a result, one would have to buy tokens in order to leverage the applications one wants to use. “Networks with popular applications will have valuable tokens,” was Cuban’s conclusion.
Cuban with a focus on Smart Contracts and DAOs
The investor, known from the TV show “Shark Tank”, sees particularly high benefits in smart contracts and decentralized autonomous organizations (DAOs). “Smart contracts can change the world,” Cuban told CNBC on a previous occasion, again highlighting them as an important use case for crypto. Smart contracts, i.e. intelligent digital contracts, are required in DeFi applications so that transactions can be carried out between anonymous parties without a third party acting as an intermediary. They are stored on the blockchain and are therefore protected against manipulation. Smart contracts are also essential for NFTs and the creation of DAOs.
In addition, Cuban told “CNBC” that DAOs are particularly interesting from an investor perspective. “It’s really something I want to invest in,” said the Dallas Mavericks owner. Decentralized Autonomous Organizations are not controlled by a management team but by the broad group of investors by voting on key decisions. The voting rights are distributed according to the number of project tokens held by each investor. These types of organizations will eventually produce “groundbreaking companies,” according to Cuban, according to CNBC.
Editorial office finanzen.net
Image sources: Helga Esteb / Shutterstock.com, r.classen / Shutterstock.com