{"id":16229,"date":"2023-01-08T04:09:29","date_gmt":"2023-01-08T04:09:29","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/billionaire-mark-cuban-warns-of-next-crypto-implosion-coming-from-wash-trades-featured-bitcoin-news\/"},"modified":"2023-01-08T04:09:29","modified_gmt":"2023-01-08T04:09:29","slug":"billionaire-mark-cuban-warns-of-next-crypto-implosion-coming-from-wash-trades-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/billionaire-mark-cuban-warns-of-next-crypto-implosion-coming-from-wash-trades-featured-bitcoin-news\/","title":{"rendered":"Billionaire Mark Cuban Warns of Next Crypto Implosion Coming From Wash Trades \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Mark Cuban, a Shark Tank star and the owner of the NBA team Dallas Mavericks, has warned that the next crypto implosion could come from \u201cthe discovery and removal of wash trades\u201d on centralized exchanges. The billionaire\u2019s comments followed the collapse of crypto exchange FTX which wiped out billions of dollars of customer funds.<\/strong><\/p>\n

Mark Cuban on the Next Crypto Implosion<\/h2>\n

Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, shared his thoughts on the next crypto implosion with The Street, published Friday. The billionaire said:<\/p>\n

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I think the next possible implosion is the discovery and removal of wash trades on central exchanges.<\/p>\n<\/blockquote>\n

\u201cThere are supposedly tens of millions of dollars in trades and liquidity for tokens that have very little utilization,\u201d Cuban emphasized. \u201cI don\u2019t see how they can be that liquid.\u201d<\/p>\n

However, the Shark Tank star admitted: \u201cI don\u2019t have any specifics to offer to support my guess.\u201d<\/p>\n

Wash trading has long been a concern with cryptocurrency exchanges attempting to inflate their trading volumes. Wash trades are among the manipulative practices prohibited by the Securities and Exchange Commission (SEC), and regulators worldwide are increasingly cracking down on wash trading involving cryptocurrencies.<\/p>\n

Kim Grauer, director of research at blockchain analytics firm Chainalysis, said in September last year that wash trading in the crypto space is currently \u201ca legal gray area that we\u2019re all trying to figure out how this should be regulated and what\u2019s illegal.\u201d<\/span><\/p>\n

The crypto industry is also suffering from the aftermath of the collapse of crypto exchange FTX, which filed for bankruptcy<\/a> in November. Former FTX CEO Sam Bankman-Fried (SBF) has been charged with multiple counts of fraud. However, he has pleaded not guilty to those charges.<\/p>\n

Cuban said in November that if he were Bankman-Fried, he would \u201cbe afraid of going to jail<\/a> for a long time.\u201d He stressed: \u201cIt sure sounds bad.\u201d The billionaire owner of the Dallas Mavericks previously explained<\/a> that recent blowups in the crypto space, including the FTX implosion, were \u201cbanking blowups,\u201d rather than \u201ccrypto blowups.\u201d<\/p>\n

The Shark Tank star believes that bitcoin is a good investment<\/a>; he called gold investors \u201cdumb.\u201d He also revealed that he invests in crypto<\/a> because he expects smart contracts to \u201chave a significant impact in creating valuable applications.\u201d<\/p>\n

Do you believe Mark Cuban is right about the next crypto implosion coming from wash trades on centralized exchanges? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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