Billionaires have always had their say when it comes to just about anything. The crypto market is no different, with several billionaires showing support for digital assets and taking their companies into the space.
Elon Musk and Jack Dorsey have especially become fan favorites, thanks in no small part to their ability to put their money where their mouths are and actually support digital assets. However, Mark Cuban is making a significant case to be the crypto industry’s top supporter among the billionaire class.
Move Over, Elon
Cuban, who made his money from the internet age and is now the owner of the Dallas Mavericks, has always been open to new technologies - especially those he can make money from. When cryptocurrencies grew into the mainstream, Cuban was one of the first to immediately embrace it.
Today, the Mavericks are one of only two teams in the NBA that accept crypto for payment - things like game tickets, merchandise, and other items are payable using crypto. Cuban himself has also invested in different crypto platforms, with his focus especially turned towards aspects like non-fungible tokens (NFTs) and decentralized finance (DeFi).
With his continued support for crypto, Cuban has grown to become probably the industry’s top billionaire. Elon Musk got a lot of flack after he and Tesla announced that they would no longer accept Bitcoin for payments in May - an event that coincided with the downturn that came in May.
Musk might not have been the only cause of the downturn, but there’s little doubt about the fact that his influence was present in the events that happened later. Since then - or, for that period, at least - Musk has been Public Enemy #1 in the crypto space. Cuban, on the other hand, stuck with his guns.
Mark’s Pro-Crypto Moves
When Musk and Tesla stepped away from Bitcoin, Cuban doubled down. The billionaire tweeted at the time that the Mavericks will continue to accept crypto - Bitcoin, Ether, and Dogecoin - for payments for tickets and merchandise.
That same month, Cuban backed Polygon - a famous interchain scaling solution. Polygon has gone on to grow this year, with the company itself now looking to step into DeFi with a decentralized autonomous organization (DAO).
Throughout the market correction, Mark Cuban continued to stay as a staunch crypto fan. In the wake of recent regulation calls, the billionaire has maintained that cryptic can't necessarily be tied down. Earlier in August, Cuban gave his opinion on the implications of the Biden administration’s $1 trillion infrastructure bill, which will implement significant rules for crypto businesses and brokers.
The infrastructure bill focuses primarily on getting funds to improve the United States’ roads, bridges, and other public utilities. However, it also caused a lot of concerns in the crypto community as it wants to implement tighter rules on companies in the industry. The bill will also expand reporting and compliance requirements for crypto brokers while also mandating crypto transactions worth more than $10,000 to be reported to the Internal Revenue Service (IRS)
Speaking to The Washington Post, Cuban explained that crypto has grown much beyond the purview of small Washington rules. Drawing the industry’s growth to that of e-commerce, the billionaire explained:
“Shutting off this growth engine would be the equivalent of stopping e-commerce in 1995 because people were afraid of credit card fraud. Or regulating the creation of websites because some people initially thought they were complicated and didn’t understand what they would ever amount to.”
Offering A View On Both Sides
Of course, this isn’t to say that Cuban has always supported everything crypto-related. The billionaire called for regulation of stablecoins in June, following an exit scam from Iron Finance.
Cuban had invested a sizable amount in Iron Finance, which claimed to be a collateralized stablecoin project. However, after the coin’s value plunged by about 100 percent following a bank run, several investors lost a great deal of money. As Cuban explained, it will be important for the government to make clear stablecoin regulations to prevent issues like these from happening again.
Cuban told Bloomberg that the Iron Finance issue was mostly because he “got lazy” and didn’t research enough. However, stablecoin regulation remains a priority.
“There should be regulation to define what a stablecoin is and what collateralization is acceptable. Should we require $1 in U.S. currency for every dollar, or define acceptable collateralization options, like U.S. treasuries.”
Mark Cuban continues to look for the next big thing as his quest to keep building wealth continues. He has also shown that he has a balanced view, especially in the face of all the hysteria and hype that can surround crypto from time to time. If he turns out to be crypto’s favorite billionaire, it might not be much of a surprise.