Billionaire Mark Cuban Warns Of Coming Cryptocurrency Implosion Due To Wash Trades

Shark Tank star and NBA Dallas Mavericks owner Mark Cuban has warned that the next crypto implosion could come from “detection and removal of laundry trades” on centralized exchanges. The billionaire’s comments follow the collapse of cryptocurrency exchange FTX, which wiped out billions of dollars in client funds.

Mark Cuban on the next cryptocurrency implosion.

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

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

There are reportedly tens of millions of dollars in transactions and liquidity for tokens that are very little used“, emphasized Mark Cuban. “I don’t see how they can be so fluid“.

However, the Shark Tank star admitted: “I have no details to give to support my conjecture.

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

Kim Grauer, director of research at blockchain analytics firm Chainalysis, said last September that wash trading in the crypto space is currently “a legal gray area that we are all trying to figure out how to regulate it and what is illegal.

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

Mark Cuban said in November that if he were Bankman-Fried, he would have “afraid of going to prison for a long time“. He pointed out: “It sure looks bad“. The billionaire owner of the Dallas Mavericks previously explained that recent explosions in the crypto space, including the implosion of FTX, were “bank blasts“, rather than “crypto explosions“.

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

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