Mark Cuban says this is ‘the least important part of crypto’ for investors to focus on


When considering any cryptocurrency investment, billionaire investor Mark Cuban looks for utility in each project.

That’s why, to him, “tokens trading are the least important part of crypto,” he tweeted on Tuesday.

Instead, Cuban sees smart contracts, or collections of code that power decentralized applications, and how they’re used within projects as the most important use case. 

For example, smart contracts are essential in powering decentralized finance, or DeFi, applications and nonfungible tokens, or NFTs. In addition, they’re instrumental in forming decentralized autonomous organizations, or DAOs.

“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,” the “Shark Tank” investor and Dallas Mavericks owner said.

This also applies to everyday investors and what they should look for when considering investing in a crypto-related project too, Cuban tells CNBC Make It.

“Always look for the utility,” he says. “That is where value is created.”

This isn’t surprising, as Cuban has repeatedly mentioned his belief in investments due to their utility, naming smart contract capabilities as an example. In the past, he’s even attributed this way of thinking to why he’s an “Ethereum maxi.” 

“Smart contracts can change the world,” he previously told CNBC Make It.

Nonetheless, financial experts warn that cryptocurrency is a risky, volatile and speculative investment. They warn to only invest what you can afford to lose.

Cuban is an avid investor in the space, with a cryptocurrency portfolio of various digital coins, NFTs and investments in many blockchain companies.

Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”

Sign up now: Get smarter about your money and career with our weekly newsletter

Don’t miss: What Mark Cuban is most excited for in the crypto space next year

Products You May Like

Articles You May Like

‘This is make or break’ — students are still waiting on financial aid days ahead of National College Decision Day
‘Lose-lose situation’: New Swiss bank laws could derail UBS’ challenge to Wall Street giants
Regional bank earnings may expose critical weaknesses, former FDIC Chair Sheila Bair warns
JPMorgan Chase is set to report first-quarter earnings — here’s what the Street expects
‘Buffett really was not a great stock picker’: Financial researcher Larry Swedroe on how investors can emulate the billionaire investor

Leave a Reply

Your email address will not be published. Required fields are marked *