Billionaire investor Mark Cuban recently said that projects with no real value will be removed from the existing market, while disruptive projects will continue to grow.
Billionaire investor Mark Cuban
“In the stock market and cryptocurrency, you will see companies that are maintained with cheap, easy money but without the right business prospects disappear. As Warren Buffett once said, "When the tide is low, you'll see who's swimming naked."
Cuban said these projects are easy to develop during a bull market when prices are trending up. Even without a solid business plan or providing real value, many of them get funding and grow.
But, he thinks they will become extinct when the market is hit by bears. As every project needs a solid token economy (tokenomics) and real value to survive amid the depressed sentiment that accompanies the downtrend that pervades the space.
“Disruptive apps and technologies are released during a bear market, whether in stocks, cryptocurrency or any business, will always find a market and succeed.”
Welcome bear market
Many well-known crypto execs agree with Cuban when it comes to bear market benefits.
Web3 Foundation CEO Bertrand Perez is one of them, asserting that there are many tokens and projects that need to be removed from the market. CEO Brad Garlinghouse of Ripple agree with Perez and question whether the digital currency community really needs more than 19,000 currencies?
Chairperson FTX US Brett Harrison also emphasized only some projects have practical value.
“Perhaps there shouldn't be hundreds blockchain different in 10 years, I think there will be a few clear winners with different applications.”
CEO Mihailo Bjelic of Polygon agree with the rest, asserting the current bear market is a healthy correction. It will benefit the space in the long run by eliminating projects that have no value.
Current bear market
Total crypto market capitalization has dropped by 60% to $895 billion as of press time.
The market is currently showing no signs of turning bullish. Despite that, Bitcoin still have better returns than 73% in the long run compared to other great investment options. Many believe that after the market purifies itself through bear claws, Bitcoin will enter an exponential growth phase and reach $100,000.