The notorious Billionaire sees increasing value for investors and businesses in crypto—Cuban detailed what excites him about different DeFi projects in his most recent blog post.
Cuban Has DeFi on His Mind
On June 13, famed billionaire and mogul Mark Cuban released a post on his “Blog Maverick,” praising decentralized finance (DeFi) and its financial potential. He sees world-changing ventures emerging from DeFi. In the blog post, he does his best to simplify esoteric DeFi terms that he finds constructive so that investors can follow him and make informed investment decisions.
How to Invest in Crypto like Mark Cuban
The blog post highlights providing liquidity and yield farming as essential mechanisms to decentralized finance that Cuban finds effective and useful for an investment portfolio. When looking to invest in crypto, Cuban looks for a few key features: current revenues, growth rates, defensibility, and the strength of the crypto community. He wants to believe in the project as well.
Cuban is quick to note that his column is not official investment advice, but it is hard not to listen to the successful investor and entrepreneur. The Mavericks owner has begun a pivot to DeFi and brings a unique take traditional crypto investors may have overlooked. He describes the competition between decentralized and centralized exchanges as “brutal.”
Due to his accounts linked to charities and public money, his investments are trackable. For example, Beefy Finance developer Mooncow revealed in an exclusive live stream with BSC.News that Cuban has invested about $1.6 million into Beefy Finance recently.
In the blog, Cuban gives two specific LPs he holds and explains the further rationale for investing. First, he admitted in the blog to being the sole LP provider of DAI/TITAN LP on the QuickSwap exchange, which he says brings him extra gains through 100% of percentage fees. Secondly, he holds BNT on Bancor Network because he finds the platform easy to use and likes their protection.
Editors Note: Iron Finance has faced a bank run causing severe loss for IRON and TITAN users, including Cuban.
DeFi “Saves Millions”
Cuban sees capital costs as a considerable barrier to traditional investing, but not for crypto. Instead, he looks at overhead costs or the lack thereof as an essential facet to DeFi. Cryptos, unlike conventional software companies, rely on a distributed network where the processing power is divided. The Miners and validators push the company along at a reduced rate of function that they provide.
Cuban describes cryptos like Polygon/Matic as being able to save enormously on initial capital needs. The inherently distributed networks mean less demand on the company–or crypto–which creates higher revenue margins. This distribution also significantly reduces operating costs. Cuban estimates that this approach saves millions of dollars in start-up costs required in traditional software companies.
Cuban noted that crypto requires significantly less “cost of capital and [has a] cost of operations advantage.”
Cuban Sees the Light
Cuban espouses that the absolute brilliance of DeFi lies in Liquidity Providers (LPs). The role of LPs is the opposite of traditional entrepreneurship, where the company and its investor take risks. The role of an LP is to input an asset into the ecosystem in ways like staking and yield farming. LPs also allow these assets to be hedged for swaps of other tokens by the protocols. In other words, who needs venture capitalists when the investors flock to the projects organically that they love and support.
The billionaire says this is another way to save millions. LPs are even rewarded instantly with massive APRs and tokenized reward systems, unlike a traditional investor who may wait much longer for a return on investment. The win-win situation is a game-changer for Cuban, who warned financial institutions that crypto-based businesses are well on their way to compete with traditional companies.
In It For The Fun Of It
The TV personality from Shark Tank also finds value in the gamified tokenization built-in to De-Fi because of the significant advantages when trying to mobilize a project. Cuban uses the analogy of a common arcade that requires house tokens, like Dave and Busters. You can only win D&B rewards with D&B tokens.
The democratic value to tokens is also a feature Cuban finds attractive. All tokens are created equal, and Cuban sees this as a way to “build communities that replace layers and layers of bureaucracy.” Cuban sees entities like decentralized autonomous organizations (DAOs) as the future of business and believes regulators should do more to let them flourish.
His Twitter bio links directly to his non-fungible token (NFT) marketplace on Lazy. His NFTs include some from the NBA, including Mavericks’ All-Star Luka Doncic and the late Kobe Bryant. He also told a Forbes reporter recently that Dogecoin is one of the best entertainment values for under $10.
Any follower of the NBA will be familiar with the Mavericks owner, known for jovial and inclusive leadership. He is even a part of the NBA’s “Blockchain Advisory Subcommittee.” The famous NBA owner has also jumped into the NFT game.
Finally, Cuban is not the only famous name from the hit ABC show “Shark Tank” to make headlines in crypto as of late either. Two weeks ago, Kevin O’Leary, also known by his moniker “Mr. Wonderful,” gave his approval to crypto.
Source : bsc.news
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