Mark Cuban, billionaire entrepreneur, and investor has time and again asserted his interest in crypto. Even though his stance on the industry is rather confusing, the billionaire believes that certain cryptocurrencies could thrive, despite certain roadblocks. More recently, Cuban pointed out how the decentralized finance wing popularly known as DeFi was better than Robinhood, Gamestop, as well as short selling.
Mark Cuban’s Take On DeFi
In an array of tweets, Mark Cuban addressed the Gamestop shorts that has been the latest internet sensation. The billionaire pointed out that any person who intends to short a stock that has already been “heavily” shorted, would have to pay a fee to borrow that stock. Unlike buying stock, borrowing stocks would require a fee payment. The tweet read,
He further revealed that 30% APR goes to Robinhood. Cuban further said, “Imagine if you pooled your crypto and the platform was getting 30% APY and didn’t pay all but fees to you? What would happen?” The billionaire believes that Wall Street takes advantage of “the little guy” like this. Therefore, he went on to urge people to look for an opportunity that would permit them to hold as well as lend shares in their own names in order to get yields.
Furthermore, Mark Cuban added,
“I’m not saying HODLing stocks is bad. It can be great and have the same impact as HODLing crypto. And the same principles even apply. The number of shares outstanding and their growth is comparable to coins mined (without the algorithmic control).”
The billionaire stressed the fact that no amount of trading could keep a bad firm in business. However, he suggested, ‘if small trades can work together and share information together the power to move stock pricing moves quickly from the analyst on Wall Street to the people working together.’
At present, the DeFi space was valued at $26.97 billion with Maker dominating the scene by over 17.67%.