Billionaire Mark Cuban Commends Defi Economy Dubbing It the ‘Next Great Growth Engine’

Billionaire Mark Cuban Commends Defi Economy Dubbing It the 'Next Great Growth Engine'

On June 13, the billionaire investor and co-host of the television series Shark Tank, Mark Cuban, explained his fascination with decentralized finance (defi) in an editorial published to his blog. Cuban details that many defi organizations are different because they are not corporate entities or based in the United States. He believes that “no one owns majority control” of these operations which makes them “permissionless” innovations.

Mark Cuban Sees Massive Potential When It Comes to Permissionless Finance

The entrepreneur Mark Cuban has been in the crypto space for quite some time now, and a recently published blog post explains he is focused on defi innovation and decentralized exchange (dex) platforms.

Cuban wrote an opinion piece on his blog called: “The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects,” which explains the defi universe from his point of view. Cuban stressed that yield farming via staking and liquidity providing are the core features of defi and as far as the economy is concerned, he believes defi could be the “next great growth engine.”

Cuban discussed his interest in certain projects like Polygon/Matic and a number of dex platforms he personally leverages. “Examples of such exchanges that I use are, quickswap.exhange,, [and] uniswap,” Cuban wrote. The investor further detailed the benefits of these operations by explaining how finance companies need financial depth to offer specific services.

“You need to be able to afford to hedge the risk of pricing volatility between currencies. If you want to do this business with scale, across the world, it can be very expensive and risky,” Cuban’s blog post insists. The Shark Tank co-host added:

Not for Defi Exchanges. What makes running a Defi exchange so much better than a traditional centralized financial business of this and any kind is that rather than the owners of the business, investors and their creditors putting up capital for all the transactions to take place, Liquidity Providers (LPs) do it for them.

‘The Rewards Have to Be High Because It Is Truly a Laissez Faire Market’

Cuban remarks that currently exchange competition is “brutal,” and he describes the rewards of this economy as “a Laissez Faire market.” The investor discusses projects like Compound and Aave, and how Aave is a “completely automated, permissionless platform where there are no bankers, no buildings, no toasters, no vaults, no cash, no holding your money, no forms to fill out, no credit ratings involved.” Cuban further emphasized:

Everything is controlled by smart contracts. It’s fully automated. You don’t have to get approval from anyone and it takes minutes to take out a loan. This is called being Permissionless — This approach is the future of personal banking.

The Shark Tank co-host reminisced about when he gave a Zoom speech during the pandemic and said he sees the world changing after what happened in 2020 and 2021. The world’s companies will transform, Cuban said at the time, and he envisions defi and crypto firms being an important part of this global transformation. Moreover, if the U.S. doesn’t pay attention, the country could miss out on the “next great growth engine.”

“Among those [transformative] companies, it’s already a certainty that Defi and other crypto organizations will be at or near the top of the list,” Cuban’s blog post concludes.

“Unlike the early days of the internet where we fostered and supported innovation and entrepreneurs, we are already seeing our politicians shitting on the innovations crypto is fostering. Hopefully, this changes quickly or we will lose the next great growth engine that this country needs.”

What do you think about Mark Cuban’s outlook when it comes to crypto and defi? Let us know what you think about this subject in the comments section below.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

New Strategic Partner for CheersLand: Medabots

Cheerlands has made an announcement about its partnership with Medabots, which is one of the best GameFi projects across the world. So it is the new strategic partner, and both of them will be working together in terms of cross-marketing, staking, working with tournament organizations, and competitions to grow each other’s projects in various ways.

FTX Ventures to Support Development of Product Categories

The segment of technology services is going through a phase of comprehensive transformation. Many competitive players are entering into the segment, and as a result, all stakeholders, including customers and investors, are getting access to new-age services and technology products. The organization is now gearing to make the future of the ongoing web3 Revolution even

Sphynx Labs Is Looking Forward to Integrating with Chainlink

Sphynx Labs, called the decentralized exchange, is officially integrating three different decentralized services, Chainlink, the leading network of Oracle, in a decentralized manner. Sphynx is working towards the enhancement of functions in its platform by- Using Chainlink VRF to verify that its drawing games are provably fair. Working with Chainlink Keepers to provide additional stop-loss

SundaeSwap and the ISO to Go LIVE on Thursday

The long-awaited moment has arrived! The information about the launch of  SundaeSwap DEX is presented in an easy-to-understand format below. Important Dates and Points to Remember: SundaeSwap will go live as a completely operational beta decentralized exchange on 20 January Thursday. The 1st round of ISO prizes will be determined on 25 January Tuesday. To