Mark Cuban says crypto is at the start of the ‘great unwind’ as prices plummet

Shark Tank star and billionaire investor says ‘the best platforms will do well over the long term’, after fall in value of major cryptocurrencies

Cryptocurrencies are at the start of the ‘great unwind’, according to billionaire investor Mark Cuban.

The star of NBC’s “Shark Tank” said cryptocurrencies were falling in value because of an unwinding of the market, after Bitcoin fell again on Sunday.

Cryptocurrencies Etherum and Dodgecoin also fell, with commentators — and Cuban — taking to Twitter.

“There was just way too many projects stretched to crazy valuations and not enough liquidity to support the prices when new demand dries up,” wrote Larry Cermark, a researcher in digital assets for The Block. “Add leverage and voila”.

Cuban, who in January was a supporter of “WallStreetBets” on Reddit, called it the “Great Unwind”.

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“The minute Etherum drops to their Tragic Number, they [investors] had to Unwind. Unstake, Remove Liqudity, Repay,” wrote the star of “Shark Tank”.

In an email to Newsweek, Cuban added that "the more utility the platform has the more successful it will be."

"At the end of the day all crypto is software and the most successful software has happy users that can't live without it and are willing to pay enough to keep them vibrant”.

China on Sunday announced a crackdown on cryptocurrency trading, adding to market uncertainty.

Tesla founder Elon Musk tweeted about Dogecoin at the weekend, causing the cryptocurrency to tumble, and then rebound, as did Bitcoin on Monday.

Cuban added to Newsweek that although cryptocurrencies were falling in value, “the best platforms will do well over the long term."