Billionaire entrepreneur Mark Cuban thinks cryptocurrency is in the same downturn as technology and internet companies in the early 2000s.
Cuban addressed the malaise in a viral Twitter
wire on Monday. “Crypto is going through the silence that the internet has been going through,” he wrote.
The comparison between cryptocurrency and the early days of the internet has been made before by Cuban and others, including entrepreneur Gary Vaynerchuk. The dotcom bubble burst in 2000 after several Internet-centric companies received high levels of investment speculation, eventually bottoming out.
Cuban sold his Broadcast.com company to Yahoo for $5.7 billion in 1999, just before the dotcom crisis. Broadcast.com has since been discontinued.
But what now? While NFTs have become extremely popular in recent years, creators like beeple and NBA top shot selling NFTs for millions of dollars, recent NFT sales have plummeted as more creators flooded the market. The average daily transaction volume on OpenSea, the largest NFT marketplace, was down more than 55% from January 2022 to March 2022according to the cryptodata tracking platform Dune Analytics.
“I think you saw a lot of newcomers at the beginning who were excited about this, but didn’t necessarily understand the basics, and I think the cooling is a reflection of that,” Jordan Birnholtz, co-founder of NFT marketplace Neon, told Distributed Ledger†
and Venmo, told MarketWatch in July 2021 that like Cuban, he sees NFTs and crypto following similar paths as the early Internet companies in the late 1990s.
†I view NFTs exactly as I saw the internet in 1999† Internet stocks and their valuations went through the roof prematurely, and many things collapsed. Meanwhile, eBay
were all there,” said Vaynerchuk.
Cuban said something similar in a now-deleted tweet last January. “If you look at crypto trading, it’s EXACTLY like the internet bubble. EXACTLY,” he wrote. “I think BTC, ETH and a few others will be analogous to the ones that were built during the dotcom era, survived the bubble burst and thrived, like AMZN, eBay, and Priceline. Many won’t.”
Cuban’s final crypto comments on Monday came as prices plummeted for many cryptocurrencies. Bitcoin prices floated around about half of its November peak for $32,000. Ethereum prices are down 24% in the past three months and 39.2% in the past 12 months.
fell more than 13%, MicroStrategy
shares fell more than 17% and Riot Blockchain Inc.
decreased by more than 13%.