Billionaire Investor call for crypto regulation

[Johnlomape]

Mark Cuban, the billionaire investor and owner of the Dallas Mavericks that has begun dabbling in bitcoin and crypto, has called for regulation of burgeoning decentalized finance (DeFi) space.

Cuban issued the call to regulators after he put money into an algorithmic stablecoin that collapsed, telling Bloomberg there "should be regulation to define what a stablecoin is." Stablecoins—a type of cryptocurrency that's pegged to an asset, usually the U.S. dollar—have rocketed in recent years, with the largest stablecoin, tether, now boasting a market capitalization of $62 billion. Meanwhile, DeFi, using cryptocurrency technology to recreate financial products such as loans and insurance without the need for bank, has surged in popularity over the last year, helping the price of ethereum, the blockchain on which most DeFi projects are built, to soar.

DeFi stablecoins, often attempting to hold a peg to fiat currencies by creating arbitrage opportunities and liquidity between coins, are notoriously risky with a myriad of similar projects collapsing recently. "There should be regulation to define what a stable coin is and what collateralization is acceptable," said Cuban.

Cuban hasn't revealed how much he lost on the project, telling Bloomberg that "as a percentage of my crypto portfolio it was small ... but it was enough that I wasn't happy about it." "I got hit like everyone else," Cuban told a fellow DeFi investor via Twitter who suggested Cuban had been "rugged"—when project liquidity drys up and investors are unable to withdraw cash.

Cuban—who revealed in March that 60% of his crypto holdings are in bitcoin, 30% in ethereum, and 10% in other coins—has recently begun experimenting with DeFi, writing this month in a blog post that "banks should be scared" of the largely unregulated and burgoning technology.

https://www.forbes.com/sites/billybambrough/2021/06/18/billionaire-bitcoin-investor-mark-cuban-calls-for-crypto-regulation-after-price-of-radical-new-token-suddenly-crashes-to-zero/?sh=1f3545db2607

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[Coin_trader]

Not new on DeFi community. 

But is sucks when you are invested on Stablecoin then it collapse like hell, Only in DeFi this things will happened since most of the teamm there are anonymous which is very easy for them to rug pull. DeFi market will be in trouble once regulation step in and enforce law to regulate it. We will not see anymore insane APR offer in DeFi once there's a regulation monitoring every financing there.

[electronicash]

if he weren't scammed by a defi project he wouldn't be calling this regulation. i have not read anything about Cuban trying to go after the scammer to recover his funds, why?

going after the scammers-criminals i think is a lot easier than regulating crypto. he should know that anyone with a skill can create a token and then list it on a market. the internet is open for everyone just as cryptocurrencies are.

[SquirrelJulietGarden]

Regulations are good to help cryptocurrency market has more adoption and cryptocurrency goes to mainstream.

In any society, if you don't have laws, regulations, you will live with risk and no one from government will protect you. From scam project, Ponzi, exchange scam exit, ...

The market will be shocked and weak hands will leave the market. Gamblers will be liquidated. Long time, regulations are good for crypto market. It will be more visible in next several years and next one decade, when we look at where we are now, we will see regulations initiated in 2020 and 2021 are very good support for crypto market.

[Poker Player]

Regulations are good to help cryptocurrency market has more adoption and cryptocurrency goes to mainstream.

In any society, if you don't have laws, regulations, you will live with risk and no one from government will protect you. From scam project, Ponzi, exchange scam exit, ...

What surprises me is that Bitcoin is regulated and DeFi is not. Is that so? At least they are regulated in terms of paying taxes, I don't know if he is referring to broader regulation.

[yazher]

How in the world a stable coin that has nothing to do with the other coins drops its price, I mean, it has a different perspective and does not depends on some other non stable coins. Looks like this kind of scenario will drop bombs on those who have some doubts regarding it and it pushes them away from investing. That's the only way they can solve this kind of problem where they put some regulation to prevent such things to happen in the future. When you have it all calculated and you speculated that nothing will go wrong in your investment because it's called "stable", now investors should really take their time in which stable coins they want to put their money.

[indrakusumaindra]

Not new on DeFi community. 

But is sucks when you are invested on Stablecoin then it collapse like hell, Only in DeFi this things will happened since most of the teamm there are anonymous which is very easy for them to rug pull. DeFi market will be in trouble once regulation step in and enforce law to regulate it. We will not see anymore insane APR offer in DeFi once there's a regulation monitoring every financing there.

Rug pull on stable coin its freking sad. thats what you got when you looking for big apr, big reward means big risk. Big apr on stable coin doenst mean it couldnt have an inflation, when the coin too much and there is low demand what you expect for.

[bitcon]

The main idea of crypto market is decentralisation and no regulations. If it was under control, then what makes it different from fiat money? On crypto market people are completely responsible for their money, so they should always learn the ropes if they want to invest in something.

He shouldn't have chosen algorithmic stablecoin as he hadn't known how they worked. Some of them are not pegged to neither fiat, nor commodities, nor other cryptocurrencies. They work thanks to algorithms and arbitrage. But these mechanisms are new, that is why people don't really trust them, as a result, in case of panic, mechanisms break down and prices of algorithmic stablecoins collapse.

[NewRanger]

The main idea of crypto market is decentralisation and no regulations. If it was under control, then what makes it different from fiat money? On crypto market people are completely responsible for their money, so they should always learn the ropes if they want to invest in something.

He shouldn't have chosen algorithmic stablecoin as he hadn't known how they worked. Some of them are not pegged to neither fiat, nor commodities, nor other cryptocurrencies. They work thanks to algorithms and arbitrage. But these mechanisms are new, that is why people don't really trust them, as a result, in case of panic, mechanisms break down and prices of algorithmic stablecoins collapse.

in my opinion , cryptocurrency now not truely decentralized anymore. We were easy to manipulate by single tweet from popular person. Is it  called as centralize power in market? Now cryptocurrency have alot changes, its depend on huge influence from finance institution or person to make it growth. Meanwhile in few years ago without all of this we could growth and survive. Regulation was not needed for bitcoin or other currency.

[passwordnow]

He should have said this before when invested in a DeFi. No hate on him as he's one of the most known personalities in the crypto verse. But I think he's got enough knowledge towards DeFi.
And now that he became a victim of the project he's invested, he's calling for something that shouldn't be since it's portraying decentralization. I hope that he gets refunded for whatever loss that he has made with that project.

[tulusikhlas]

when you know the risk of rampant fraud from various crypto elements, why do you still believe? if he knew the risks, he shouldn't have felt that he was being tricked, because the initial consequences had already been agreed upon. then come and make a fuss after he was stolen?
the question is why didn't he do more research on the project?

[Johnyz]

He only invested 10% of his assets into DEFI which i believe is still a huge money and that's why he's calling for regulation knowing he's already here in the market before, he should already know how to analyze and do his own research, he can pay good teams to handle his crypto investments to avoid this problem and being scammed. A billionaire usually don't mind that much if they only lose small money, but anyway a scam project should not be tolerated but regulation is not the answer, have your own analysis always and define what's good for you at your own standard.

[gwdf1]

in my opinion , cryptocurrency now not truely decentralized anymore. We were easy to manipulate by single tweet from popular person. Is it  called as centralize power in market? Now cryptocurrency have alot changes, its depend on huge influence from finance institution or person to make it growth. Meanwhile in few years ago without all of this we could growth and survive. Regulation was not needed for bitcoin or other currency.

Decentralisation means that nobody controls this system, nobody regulates it. And in terms of tweets, it is a question about how people choose where to invest their money. If people rely on the opinions of others without doing their own research, it is more about negligence of money. Of course, whales manipulate the prices, but they don’t make us buy, we always make the conclusive decision on our own.

[Johnlomape]

if he weren't scammed by a defi project he wouldn't be calling this regulation. i have not read anything about Cuban trying to go after the scammer to recover his funds, why?

going after the scammers-criminals i think is a lot easier than regulating crypto. he should know that anyone with a skill can create a token and then list it on a market. the internet is open for everyone just as cryptocurrencies are.

Many things are happening in the market and frequent perusing of coin to invest in is very important cos if care is observed  many scammers with feak and useless projects will end up being billionaires while the common investors will go home been broke.

[semobo]

Mark Cuban, the billionaire investor and owner of the Dallas Mavericks that has begun dabbling in bitcoin and crypto, has called for regulation of burgeoning decentalized finance (DeFi) space.

Cuban issued the call to regulators after he put money into an algorithmic stablecoin that collapsed, telling Bloomberg there "should be regulation to define what a stablecoin is." Stablecoins—a type of cryptocurrency that's pegged to an asset, usually the U.S. dollar—have rocketed in recent years, with the largest stablecoin, tether, now boasting a market capitalization of $62 billion. Meanwhile, DeFi, using cryptocurrency technology to recreate financial products such as loans and insurance without the need for bank, has surged in popularity over the last year, helping the price of ethereum, the blockchain on which most DeFi projects are built, to soar.

DeFi stablecoins, often attempting to hold a peg to fiat currencies by creating arbitrage opportunities and liquidity between coins, are notoriously risky with a myriad of similar projects collapsing recently. "There should be regulation to define what a stable coin is and what collateralization is acceptable," said Cuban.

Cuban hasn't revealed how much he lost on the project, telling Bloomberg that "as a percentage of my crypto portfolio it was small ... but it was enough that I wasn't happy about it." "I got hit like everyone else," Cuban told a fellow DeFi investor via Twitter who suggested Cuban had been "rugged"—when project liquidity drys up and investors are unable to withdraw cash.

Cuban—who revealed in March that 60% of his crypto holdings are in bitcoin, 30% in ethereum, and 10% in other coins—has recently begun experimenting with DeFi, writing this month in a blog post that "banks should be scared" of the largely unregulated and burgoning technology.

https://www.forbes.com/sites/billybambrough/2021/06/18/billionaire-bitcoin-investor-mark-cuban-calls-for-crypto-regulation-after-price-of-radical-new-token-suddenly-crashes-to-zero/?sh=1f3545db2607

When you become the investor of a project there is no guarantee for pur returns and also stablecoins which are pegged to the value of fiat (any fiat inlcuding usd) losing its value over time so a smart investor will never consider this as their investment asset.

Regulations may stop scammers/scams but it never going to save a startup from dying.

[Bitcoin Seller]

Algorithmic stablecoins are still very risky and have many problems to be solved. Not all stablecoins have dollar bail like Tether. Algorithmics just don’t have it. Their stability depends on people's trust and confidence in this stablecoin. There are many bad examples of how algorithmic stablecoins collapse, so personally I prefer to stay away from them. But investors shouldn’t accuse somebody of their losses. If you want to invest in something you should learn first, how it works and what risks it has.

[matjas]

Apparently it was about  Iron Titanium token which belongs to Iron Finance, a project that began on Polygons chain. Its stable coin IRON, was pegged to 1$ and was giving a return of 2-5% per day.
I am quite surprised that Mark would fall for such an incredible returns and then be surprised when things went south.

[michellee]

I guess he needs to learn how to invest in crypto before decide, even if he wants to invest in DeFi or Stable coin. I do not think the regulation will answer for that because as long as he is not research before investing, he will get another scam from the other projects. But it is normal if a billionaire called for regulation to the crypto, especially if he loses much money but I do not think that he will do that if he makes a big profit because he can say that crypto is the best investment for the people.

[kidbounty]

regulation, seems good. but how is it done? managing the defi ecosystem is very difficult. just imagine every day a new defi is released and it can all end up being a scam. this is always the case here and it's hard to manage all of that because the project team is anonymous. how can we manage all that when we don't know who is behind it all.

[Botnake]

They just like to protect their investment, regulation is very important as it's the only way that the crypto ecosystem will achieve a massive adoption.

Mark Cuban will not become a billionaire if he is not smart, so this action only tells that he wants to minimize the risk as this market cannot be manipulated all the time, and watching it remains highly volatile for a long time is not good for the confidence of the people who are here to adopt by enjoying the usage.

[lixer]

Cuban hasn't revealed how much he lost on the project, telling Bloomberg that "as a percentage of my crypto portfolio it was small ... but it was enough that I wasn't happy about it." "I got hit like everyone else," Cuban told a fellow DeFi investor via Twitter who suggested Cuban had been "rugged"—when project liquidity drys up and investors are unable to withdraw cash.

Cuban—who revealed in March that 60% of his crypto holdings are in bitcoin, 30% in ethereum, and 10% in other coins—has recently begun experimenting with DeFi, writing this month in a blog post that "banks should be scared" of the largely unregulated and burgoning technology.

Crypto regulations are not really a bad thing as long as it is a good regulation. Mark Cuban is a crypto investor and when there are good regulations on crypto that helps us a lot more. Look at some nations like El Salvador and see how great that is for crypto, and look at new york regulations and how bad it is for crypto. Basically, it is depending on what regulations you put on crypto, if it is a bad one than it will have bad impact and if it is a good one then it will have a good impact. I think that Mark Cuban as a crypto investor wanted a good one, definitely something that we all would benefit to have a billionaire working with us to get it.

[livingfree]

IIRC, this was the time that the DeFi he has invested started to rug pull. Well, if that's the only reason, such investments that really are intriguing should be regulated to avoid scamming people.

But it had took a Mark Cuban for this call but what's happening right now? did the government started to take action as he suggested?

[zonefloor]

According to me, he politely said that I have earned the money I will earn now, and after this time, you can regulate crypto money. Stable coins are already available in the cryptocurrency market. Other than that, they should make their ups and downs freely. The field called Defi was not available in the cryptocurrency market until yesterday, and I don't think it will remain. That's why someone is constantly saying something just to be on the agenda and add money to their money. With this kind of speculation, it's always the winners themselves. Cryptocurrency should always remain at its free market value.

[Maslate]

IIRC, this was the time that the DeFi he has invested started to rug pull. Well, if that's the only reason, such investments that really are intriguing should be regulated to avoid scamming people.

But it had took a Mark Cuban for this call but what's happening right now? did the government started to take action as he suggested?

Well, I hope the government will listen to him...but probably they don't have the interest in doing as the government itself have no control over these decentralized exchanges. Mark Cuban is not new to this, he already knows the risk of investing money in here, then he couldn't think about blaming the market as he knows it.

if he can afford to lose that huge amount, then he will go away. We understand that the market needs more investors but if this only influence the market to get controlled by the government regulations, I don't think so. And the possibility that they will take advantage of this.

[DarkDays]

Not new on DeFi community. 

But is sucks when you are invested on Stablecoin then it collapse like hell, Only in DeFi this things will happened since most of the teamm there are anonymous which is very easy for them to rug pull.

Hmm, of course this Cuban guy is going to bring the DeFi down after his humiliating sable investment collapse. I must add that just because his particular investment was poor does not mean that everything else built in DeFi is poor or a way to scam others. The risks for sure are real but so are the returns if investing wisely.

I understand that for common people understanding all of the DeFi jargon might be challenging Cuban's lesson acts as a force to regulate the industry but we must not forget the value of decentralized economies.

[AmoreJaz]

Not new on DeFi community.  

But is sucks when you are invested on Stablecoin then it collapse like hell, Only in DeFi this things will happened since most of the teamm there are anonymous which is very easy for them to rug pull.

Hmm, of course this Cuban guy is going to bring the DeFi down after his humiliating sable investment collapse. I must add that just because his particular investment was poor does not mean that everything else built in DeFi is poor or a way to scam others. The risks for sure are real but so are the returns if investing wisely.

I understand that for common people understanding all of the DeFi jargon might be challenging Cuban's lesson acts as a force to regulate the industry but we must not forget the value of decentralized economies.

but if he got lucky with his investments, for sure, the air would be different and maybe endorsing the platform that he is heavily invested. regulation may curb potential scam projects but i don't think it will hinder these scammers to rug pull. they will always find a way how to get around such protocols or regulations. and it would be hard for their investors to run after them. also, in most cases, these defi platforms are anonymous. so yeah, hard to chase them in court if you dont know who you are after.

[livingfree]

IIRC, this was the time that the DeFi he has invested started to rug pull. Well, if that's the only reason, such investments that really are intriguing should be regulated to avoid scamming people.

But it had took a Mark Cuban for this call but what's happening right now? did the government started to take action as he suggested?

Well, I hope the government will listen to him...but probably they don't have the interest in doing as the government itself have no control over these decentralized exchanges. Mark Cuban is not new to this, he already knows the risk of investing money in here, then he couldn't think about blaming the market as he knows it.

if he can afford to lose that huge amount, then he will go away. We understand that the market needs more investors but if this only influence the market to get controlled by the government regulations, I don't think so. And the possibility that they will take advantage of this.

AFAIK.

The government has their own steps on how they should deal with these DeFis that might be planning a rug pull. In the past, there were ICOs that have been taken down.

And the owners of it have been caught and I'm thinking the same for the DeFi owners that have bad plans.