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Crypto Crash: Mark Cuban says crypto is ‘in a doldrums that the internet has been through’

Billionaire entrepreneur Mark Cuban believes the cryptocurrency is on the same downturn that tech and internet companies experienced in the early 2000s.

Bitcoin hit a 10-month low on Monday, and sales of non-fungible tokens, also known as NFTs, plummeted between January and March 2022.

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Cuban addressed the slump in a viral Twitter TWTR,
+1.64%
thread on Monday. “Crypto is going through the doldrums that the internet has been going through,” he wrote.

The comparison between cryptocurrency and the early days of the internet was previously made by Cuban and others including entrepreneur Gary Vaynerchuk. The dot-com bubble burst in 2000 after several Internet-centric companies received high levels of investment speculation, only to eventually bottom out.

Cuban sold his company Broadcast.com to Yahoo for $5.7 billion in 1999, just before the dot-com collapse. Broadcast.com has since been discontinued.

The billionaire Dallas Mavericks owner is heavily invested and interested in the crypto and NFT space. He claims to own several thousand dollars worth of Bitcoin BTCUSD,
+0.62%,
Ethereum ETHUSD,
+0.83%
and Dogecoin DOGEUSD,
-12.56%,
after a CNBC Report and say so 80% of its investments that are not on “Shark Tank” refer to crypto.

But what’s next? While the popularity of NFTs has exploded in recent years, with developers like Beeple and NBA Top Shot selling NFTs for millions of dollars, recent NFT sales have plummeted as more developers flooded the market. The average daily transaction volume on OpenSea, the largest NFT marketplace, fell by more than 55% from January 2022 to March 2022, according to crypto data tracking platform Dune Analytics.

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“I think you saw a lot of newcomers early on who were excited about this but didn’t necessarily get the basics, and I think the cooldown reflects that,” Jordan Birnholtz, co-founder of the NFT marketplace Neon told Distributed ledgers.

Millionaire Vaynerchuk, who invested early in companies like Facebook FB,
+0.81%,
Twitter, Uber UBER,
+1.04%,
Snapshot,
+3.89%
and Venmo, told MarketWatch in July 2021 that, like Cuban, he sees NFTs and crypto on similar paths to early internet companies in the late 1990s.

“I see NFTs the same way I saw the internet in 1999. Internet stocks and their valuations skyrocketed prematurely and many things collapsed. Meanwhile eBay EBAY,
+0.39%,
Google GOOG,
+1.67%
and Amazon AMZN,
+0.69%
everyone was there,” Vaynerchuk said.

Cuban said something similar in a now-deleted tweet last January. “If you watch crypto trading, it is EXACTLY like the internet stock market bubble. EXACTLY,” he wrote. “I think BTC, ETH and a few others will be analogous to those that were built during the dot-com era, survived the bubble burst and thrived like AMZN, EBay and Priceline. Many won’t.”

Cuban’s latest crypto commentary on Monday came as prices for many cryptocurrencies plummeted. Bitcoin prices hovered around halfway from their November peak of $32,000. Ethereum prices are down 24% in the last three months and 39.2% in the last 12 months.

Also Read: Dow falls 600 points as S&P 500 slips to 13-month low

During Monday morning trading, shares of crypto exchange Coinbase Global COIN,
-23.02%
fell more than 13%, MicroStrategy MSTR,
-6.50%
Stocks Fall Over 17% and Riot Blockchain Inc. RIOT,
+4.76%
fell by over 13%.

https://www.marketwatch.com/story/mark-cuban-crypto-is-going-through-the-lull-that-the-internet-went-through-11652117112?rss=1&siteid=rss Crypto Crash: Mark Cuban says crypto is ‘in a doldrums that the internet has been through’

Brian Lowry

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