Mark Cuban Says The HODL Ethos of Bitcoin Traders Helped Him Support r/WallStreetBets
The billionaire investor, Shark Tank personality, and Dallas Mavericks NBA team owner, Mark Cuban; took a few hours to share his knowledge in an AMA with members of the r/WallStreetBets subreddit. He touched on several topics, mostly relating to the collapse of the stock pumping movement and the blockchain industry’s potential.
Mark Cuban may have several decades of Wall Street experience, but judging him for what he said on the AMA, he is currently standing on the side of the retail traders. He thanked the community for getting the movement going and assured them they could change the markets’ financial history.
“Thanks for changing the game. Thanks for taking on Wall Street. Thanks for making kids around the country if not the world( including my son and daughter) (to get involved). WSB changed the game far more than everyone on this board will ever get credit for.”
The Broker Was WSB’s Achilles Heel.
Mark Cuban asserted that the market downturn is fundamentally related to Robinhood and its ban on the purchases of Gamestock stocks and other similar assets. Conspiracies aside, he explained that the exchange could not support the weight of its growth, which created a liquidity crisis that took stock buyers out of the equation. This, of course, caused sellers to start lowering their prices in order to sell their shares.
In this case, it literally could be because the source of demand has been crippled. When RH shut it down, then cut it back, let’s put aside why they cut off the greatest source of demand … No RH buyers means sellers lower their price to find buyers … Keep the most natural buyers out of the market, and the price keeps on FALLING …
What f*cked up RobinHood is that they didn’t have enough cash to handle the number of customers they had, their margin loans, and the requirements from the DTCC.
And what can be done now that Robinhood is recovering? Interestingly, Mark Cuban recommends adopting the HODL mindset so famous among bitcoiners:
If you can afford to hold the stock, you hold. I don’t own it, but that’s what I would do … BTC HODLers are a great example to follow. Many bought at the highs in 2017 and watched it fall by 2/3 or more. But they held on because they believed in the asset.
Mark Cuban talks about cryptocurrencies.
Mark Cuban talked about stocks and dedicated part of the AMA to the field of cryptocurrencies and blockchain technologies.
He revealed that he owns AAVE, Sushi, ETH, BTC, and LTC. He did not say how much he had or what percentage those tokens occupied within his portfolio.
Cuban also said that the world of blockchain technologies had a high potential to change the future. When asked about the nascent technologies he found most interesting, the first place was given to developments in Ethereum.
De-Fi, NFT, but there will be a lot of ups and downs along the way. AI will change everything … Precision Medicine, Nano Technology, the MRNA technology used in the vaccines will grow. Robotics. Green Tech, all will grow.
Finally, Mark Cuban explained that blockchain could have an essential place in the future of financial markets, making them more transparent and manipulation-proof.
Stocks will be on the blockchain in the future, and that will make the markets much more efficient, transparent, and available to the small investor.
Once the AMA finished, Mark Cuban went on a phone call with CNBC saying they were tergiversing his message on Reddit. He wasn’t telling people to buy more, but recommended hodling if they believed the reasons behind the pump remained valid.
Mark Cuban confessed to be a fan of r/WalllStreetBets and what they were doing, adding that the HODL ethos of crypto traders helped him see this whole phenomenon differently.
