Mark Cuban believes that the crisis will benefit the digital asset industry

The crisis in the crypto market will help clean it up, and the projects that appeared during the bearish trend will “always succeed”. This statement was made by the American billionaire, the owner of the Dallas Mavericks basketball team, Mark Cuban.

He drew an analogy between traditional securities and the crypto market. According to the businessman, extinction awaits the companies, “held on cheap, easy money, but had no real commercial prospects.”

“As [Warren] Buffett says, ‘Only when the tide goes out can you figure out who’s swimming naked,’” Cuban said.

He also pointed out that the collapse of the Terra ecosystem in May caused a wave effect in the cryptocurrency industry. Also, this week, Celsius Network and Three Arrows Capital faced probable insolvency and large asset liquidations.

“The crypto market is seeing an explosion of failed and troubled projects amid a sharp downturn that has left investors wary of what’s to come,” the billionaire said.

However, despite the current pessimism in the market, Cuban is confident that this is temporary. According to the entrepreneur, the downturn in the crypto industry “will have a cleansing effect and become a source of innovation.”

“Disruptive applications and technologies released during a bear market, whether it be stocks, cryptocurrencies or any other business, will always find a market and succeed,” the billionaire said.

Meanwhile, Binance CEO Changpeng Zhao does not agree with panic statements about an unprecedented fall in the digital asset market. He believes that price fluctuations are normal for the stock and cryptocurrency market. The current situation is a reflection of the usual bearish sentiment with a protracted fall.

“It is quite standard when markets rise or, conversely, fall. We see this behavior in the equity markets as well. For example, Netflix fell by 70%, like bitcoin. This is not the first bear cycle that the Binance exchange is going through. And for me personally, it’s the third one,” Zhao said.