Since few weeks, copious cryptocurrencies have seen a lofty drop in their value. Bitcoin’s value tumbled from more than $46,000 seven days before under $36,397.42 at the time of publication. Dogecoin is down 4.19% in the last 24 hours.
Mark Cuban, an American billionaire entrepreneur, responded by calling the crash of cryptocurrencies the “Great Unwind” in his tweet.
I think this is the ‘Great Unwind’. Traders borrow to buy Eth, used eth to borrow alt/stable coin, used that to LP a high APY Pair, took the SLPs and staked them to max out yield. The minute Eth drops to their Tragic Number, they had to Unwind. Unstack, Remove Liquidity, Repay.
Cuban’s remark came in response to a post from Larry Cermak, the director of research at The Block. He tweeted
The implication of doing 1:1 forks of Ethereum projects but on all the other competing L1s are actually larger than people realize. There are a sh*t ton of L1s and valuations are already stretched out even on Ethereum. The dilution of buyers and money can IMO cause serious issues.
What Cuban implied by “The great unwind” is that if there is one thing crypto enthusiasts lose track of, it’s that at its base, there are a lot of participants from token holders to validators, miners, and others all get rewards.
Cuban Admire Crypto, Especially Ethereum
Charles Hoskinson, Input-Output (IOHK) CEO, delivered an “elevator pitch” to Cuban stating the benefits of Cardano (ADA) over ETH and altcoins, Hoskinson even indicated Ethereum as a “dying monopoly” due to its versatility issues.
Still, Cuban favors Ethereum. He depicts present-day NFTs as “proof of concepts” for what’s to come. Cuban further stated that smart contracts on blockchains, particularly Ethereum, is a tremendous game-changer that every company will use.
Moreover, Mark Cuban’s Dallas Mavericks are the first NBA team to allow the cryptocurrency Bitcoin, Ethereum and Dogecoin for tickets and commodities. The team will use BitPay, Bitcoin and cryptocurrency payment services provider to enable this new form of payment.
Despite seeing the volatility of cryptocurrency, Cuban and other billionaires still focus on crypto for the long run.
The Ethereum price today is $2,239.09 USD with a 24-hour trading volume of $60,190,490,839 USD. Ethereum is up 6.17% in the last 24 hours.
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