About 99% of digital currencies will likely fail in the near future, billionaire and crypto investor Mark Cuban noted. Former SEC official John Reed Stark is on the same page. Both analysts fear a crackdown on the crypto industry is on the horizon.
Their remarks were sparked by the hearing on the temporary restraining order against cryptocurrency exchange Binance. After the order went into effect, all US assets of the exchange were frozen.
Mark Cuban said that despite the pessimism in the cryptocurrency market, many companies would come out victorious in the current crypto race. “90 percent of blockchain companies will go broke. 99 percent of tokens will go broke. But the winners will be game changers. That’s the way tech works,” Cuban said.
He was joined in part by John Reed Stark, who believes that the SEC's actions are necessary due to the ongoing lack of regulation of this crypto sector. Stark stated that the agency was trying to protect investors from potential digital asset fraud. Measures taken by the SEC against Binance and other crypto exchanges would help the industry by weeding out dishonest participants, John Reed Stark said.
In response to this statement, Mark Cuban argued that the crypto sector has had a positive effect on the economy in general. The analyst noted that criticism of the cryptocurrency industry is valid, but it should be constructive. Earlier, he said that the so-called “Crypto Derangement Syndrome” (irrational fear or hatred of digital currencies) posed a significant problem for market participants.
