Over the past few days, all leading cryptocurrencies, including Bitcoin and Dogecoin, fell precipitously, with Bitcoin’s price falling from $46,000 to less than $33,000. The price of Dogecoin also declined from $0.50 to less than $0.30. Ethereum’s price is also not an exception, dipping from $3,500 last week to around $2,000 as of now.
Such a price fall of all the leading cryptocurrencies together is more than any coincidence to which a billion entrepreneurs Mark Cuban reacted by calling it the “Great Unwind.” Cuban, the ‘shark investor’ of the popular TV reality show ‘Shark Tank,’ tweeted about how the implication of doing a 1:1 fork on all Ethereum projects is inflicting more damage to the new investors. The tweet came in response to another tweet made by Larry Cermark, Director at The Block, in which he said that it is because of the IMO that 60% of the cryptocurrencies are experiencing super quick crashes. Too many projects set out together with somewhat crazy valuations were not enough to provide liquidity to support prices when the demand for new cryptocurrencies expires.
To this remark, Mark Cuban, who is well known for his crypto investments and is one of the top billionaires according to Forbes, having a worth of $4.4 billion, retweeted that it hits even more when people’s confidences are hit. He cited the example of the recent cryptocurrency crash, where traders either began to borrow to buy Ethereum (ETH), or used ETH to borrow altcoin or stablecoin, or used that to LP a high APY Pair, or even took the SLPs to stake them for maximum yield outs. The moment ETH dropped to their Tragic Number, they had to ‘Unwind, Unstake, Remove Liquidity, and Repay.’
Cuban also commented that if the crypto industry is to suffer the massive hit, it would be at its base with many participants, including the token validators, the miners, etc., who get the rewards. Therefore, as far as revenue is coming in, the rewards would attach some value to the users. He added that the crypto market is volatile, and the investors already know it beforehand. Therefore, as long as there are speculations, the market will continue hoping that the prices will improve in the long run.
