10 May 2022 15:37, UTC.
Reading time: ~2 m
The owner of the Dallas Mavericks basketball club believes that most companies using NFT and DeFi will leave the market, leaving only those who have unlocked the potential of smart contracts.
Mark Cuban said on Twitter that smart contracts will be the next driver of the cryptocurrency market. The billionaire is confident that smart-contract platforms focused on commercial use and replacing software-as-a-service (SaaS) applications will flourish in the long term:
“What we haven’t seen is the use of smart contracts to improve business productivity and profitability. That should be the next driver. When businesses can use smart contracts to gain a competitive advantage, they will succeed. Projects that realize this will survive.”
The businessman believes that the cryptocurrency market is now experiencing a lull, which can be compared to the bubble created by Internet companies during the so-called “dot-com crisis” in the early 2000s. Back then, many well-publicized companies with relatively similar products and services went bankrupt. Over the past seven days, cryptocurrencies in the Top 100 have experienced double-digit losses, and this has caused negative sentiment among investors.
Cuban believes that on top of the bearish sentiment associated with the U.S. Federal Reserve (Fed) policy tightening, the cryptocurrency market decline is related to the current “imitation phase” in the crypto market:
“Cryptocurrency is experiencing the lull that the Internet has experienced.”
According to Cuban, blockchain projects that simply “replicate what everyone else has,” by connecting non-interchangeable tokens (NFTs) with decentralized finance (DeFi) protocols, will eventually disappear because they are not required for every blockchain.
Ava Labs CEO John Wu, however, believes that GameFi is gaining popularity through the symbiosis of DeFi and NFT. The top manager sees the prospect of these technologies in the crediting of game items.
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