Mark Cuban thinks it’s inevitable that certain crypto and DeFi organizations will earn their status as “world-changing” companies – in a decade or two.
The billionaire Shark Tank celebrity penned an enthusiastic blog post extolling the virtues of DeFi and laying out its competitive advantages over legacy brick-and-mortar businesses.
Explains Cuban,
“Crypto is brutally competitive. But in crypto vs traditional, centralized businesses, all other things being equal, I’m taking crypto every time.”
“During the pandemic I gave Zoom speech after Zoom speech talking about when we look back at the pandemic in 10-20 years we would see world-changing companies had been created in 2020 and 2021. Among those companies, it’s already a certainty that De-Fi and other crypto organizations will be at or near the top of the list.”
The Dallas Mavericks owner notes that DeFi organizations by nature don’t require as much capital as legacy businesses in order to spin up and operate. Tokens allow them to distribute their costs throughout a decentralized network, altering the fundraising game and changing the financial landscape. Cuban says, “There are a lot of financial institutions that should be concerned” as a result.
He also notes DeFi organizations are less likely to be corrupted by profit motives.
“Their mission is not to maximize profits because in almost every crypto-based organization, they are decentralized. Every token is created equal. No matter who owns it. And every token owner gets to participate in the community. Yes, bigger owners get more votes, but there are not multiple classes of tokens. There aren’t VCs or founders whose tokens get priority treatment, as with stocks.”
Cuban, however, says he’s concerned with the approach US regulators and politicians have taken towards crypto and DeFi thus far.
“One place that these organizations are VERY DIFFERENT is that they are not based in the USA and they are not corporations. They are foundations. They are decentralized in their governance. NO ONE owns majority control (although the founders certainly have significant influence). This is not only because of the ethos of Decentralized Autonomous Organizations (DAOs), but also because of the ABSOLUTE STUPIDITY of our regulators forcing some of the most impactful and innovative entrepreneurs of this generation to foreign countries to run their businesses…
Unlike the early days of the internet where we fostered and supported innovation and entrepreneurs, we are already seeing our politicians sh***ng on the innovations crypto is fostering. Hopefully this changes quickly or we will lose the next great growth engine that this country needs.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/3000ad