American billionaire investor and Dallas Mavericks owner Mark Cuban thinks Ethereum’s move from a proof-of-work consensus mechanism to proof-of-stake could be a double-edged sword. I’m here. In his view, investor excitement around the move could outweigh the actual use cases for ‘merge’ and create a ‘news-selling’ event.
Cuban also argued that applying regulation to the crypto space is an important step that global regulators need to take. Investors want maximum protection, and if granted, many will enter the digital asset ecosystem and move the sector forward.
Cuban Thoughts on Merger
Ethereum, the second largest cryptocurrency protocol, plans to move from PoW to PoS later this year. The long anticipated move has made him one of the most debated subjects in the crypto industry. This process, known as “merging,” should reduce the harm Ethereum poses to the environment, while increasing network security and speeding up transaction speeds.
As such, many investors have raised their hopes for a surge in the native token Ether (ETH), creating a frenzy across the industry. Mark Cuban is also bullish about that transition. Earlier this year, he said that while Ethereum’s energy consumption could be significantly reduced, Ether could turn into a deflationary asset.
But in a recent interview, he warned that the process could create a “buy the rumor, sell the news” event. It will surge significantly, but it will not be able to continue the uptrend and may even collapse once the move is complete.
Dogecoin’s price surge last year is a classic example. When DOGE hit $0.70 in May 2021, many believed it would be valued at $1. Additionally, arguably the most prominent DOGE supporter, Elon Musk, was invited as a guest on the comedy show Saturday Night Live. was intended to potentially push up the price of
But the Tesla CEO didn’t do what the Dogecoin Army expected. Instead, he simply joked with the show’s host. Currently, it’s trading at $0.07, down 90% from its all-time high.
Regulation, SEC, and Metaverse
Speaking on other topics, such as imposing regulation on the cryptocurrency industry, Cuban said yes. As with any technological innovation, the sector needs to offer maximum security to investors so that they can enter en masse with peace of mind. He also said there are great parallels between the current state of cryptocurrencies and the early days of the Internet.
“There’s a security aspect to it, we see what’s happening every day. There’s hacking somewhere. It’s no different than it was in the early days of the internet.” There was a time when people said, ‘Don’t buy on the Internet because it puts your credit card at risk. So it’s part of the learning curve. ”
Nonetheless, Americans questioned whether the US Securities and Exchange Commission (SEC) could implement proper regulations in this area. We called the agency “incredibly hypocritical” for a reason, but at the same time it doesn’t focus on thousands of questionable financial instruments, including “pink sheet stocks.”
Cuban talked about the Metaverse and its growing popularity. To him, buying real estate in virtual reality is the “most ridiculous” thing a person can do.
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