Billionaire investor and Shark Tank TV series co-host Mark Cuban on June 13 explained his fascination with decentralized finance (challenge) in an op-ed on his blog. Cuba clarifies that many challenge organizations are different because they are not corporations or based in the United States. He believes that “no one has majority control” of these operations, which makes them innovations “without authorization”.
Mark Cuban sees huge potential in unlicensed financing
Entrepreneur Mark Cuban has been in the crypto space for quite some time now, and a recently published blog post explains that he focuses on challenge innovation and decentralized exchange (dex) platforms.
Cuban wrote a opinion piece on his blog titled: “The Brilliance of Yield Farming, Liquidity Fournir and Valuing Crypto Projects”, which explains the challenge universe from his point of view. Cuban pointed out that yield farming through staking and providing liquidity are the main features of the challenge and with regard to the economy, he believes the challenge could be the “next great engine of growth”.
Cuban has spoken of his interest in some projects like Polygon / Matic and a number of dex platforms that he personally operates. “Examples of such exchanges that I use are zapper.fi, quickswap.exhange, bancor.network, [and] uniswap, ”Cuban wrote. The investor detailed the benefits of these operations by explaining how finance companies need financial depth to offer specific services.
“You need to be able to afford to hedge the risk of price volatility between currencies. If you want to do this job on a large scale, across the world, it can be very expensive and risky, ”Cuban’s blog post insists. Shark Tank co-host added:
Not for Defi exchanges. What makes running a Defi exchange so much better than a traditional centralized financial firm of this type and every sort is that rather than the owners of the business, investors and their creditors putting capital for all. the transactions to take place, the liquidity providers (LPs) do it for them.
“The rewards must be high because it is really a laissez-faire market”
Cuban remarks that today’s trade competition is “brutal”, and describes the rewards of this economy as “a laissez-faire market.” Investor discusses projects like Compound and Aave, and how Aave is a “fully automated, unlicensed platform where there are no bankers, no buildings, no toasters, no safes , no money, no money custody, no forms to fill out, no credit scores involved. Cuba further noted:
Everything is controlled by smart contracts. It’s fully automated. You don’t need to get approval from anyone and it takes a few minutes to take out a loan. It’s called being without authorization – This approach is the future of personal banking.
The Shark Tank co-host recalled when he gave a speech on Zoom during the pandemic and said he sees the world changing after what happened in 2020 and 2021. Businesses of the World will transform, Cuban said at the time, and he sees challenge and crypto businesses being an important part of that global transformation. Moreover, if the United States does not pay attention, the country could miss the “next big engine of growth”.
” Among these [transformative] companies, it is already certain that Defi and other crypto organizations will be at or near the top of the list, ”Cuban’s blog post concludes.
“Unlike the early days of the internet where we encouraged and supported innovation and entrepreneurs, we are already seeing our politicians shitting on the innovations that crypto fosters. Hopefully that changes quickly or we lose the next great engine of growth this country needs. “
What do you think of Mark Cuban’s outlook for crypto and challenge? Let us know what you think of this topic in the comments section below.
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