United States senators have requested information from Silvergate Capital regarding the firm's association with FTX.
Mark Cuban, the billionaire investor, has commented on cryptocurrency and blockchain-based digital currencies. The major factors hindering adoption are the complexities and lack of understanding in the market leads to questions of genuine use-cases and utilities. He concluded that there will come a day when people will wonder how they went without using blockchain technology.
In a thread on Twitter, he gave his thoughts on the future of cryptocurrency adoption and how the industry can – and likely will – evolve as the utility and use cases become more obvious. The investor believes that right now tokens are a reflection of “real demand”, rather than investors and users betting on the future.
Crypto and each implementation is evolving in real time from “what is the potential utility” to “What is the current utility and how many users does it have”. Tokens/Coin prices are now less a bet on the future and more a reflection of real demand.
— Mark Cuban (@mcuban) May 15, 2021
In his ten tweets, he pointed out that the industry is currently highly competitive and that investors and users might be experiencing the full understanding given the absence of understanding coming from teams in the industry. He wrote:
“Each platform has to create demand for it’s products/applications that outperform the non-crypto equivalents. Like any business, it needs customers, sales and profits… Some of the crypto platforms I talk to now seem confused when I ask about their products, sales, gross margin dollars and profits. But they truly matter. As in any other business.”
He continued, though and concluded his thread saying that he suspects the crypto phase to evolve past education – where it currently is sitting – to one of marketable equity. When it hits this, the technology will probably be leveraged to be fully realised in its uses and people will struggle to think back to a time when it wasn’t integrated in daily lives:
“Like all generational technologies, it takes a generation to grow up. Crypto is in the phase where users need to be educated and products and services need to be sold and deliver on their initial promises.Then, Crypto can mature to the point we wondered how we ever lived with out.”