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Despite the cryptocurrency hype over the past several years, digital currencies may still leave many of us scratching our heads. They can be highly volatile, with cryptos making huge gains followed by huge losses.
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While many people have not jumped on the crypto bandwagon, billionaire entrepreneur and “Shark Tank” judge Mark Cuban started getting involved several years ago. He firmly believes in the digital currency Dogecoin (DOGE), so much so that three years ago, he agreed to accept it as payment for tickets and merchandise for his basketball team, the Dallas Mavericks.
However, with the rise of coins inspired by online memes or trends, many cryptos are flooding the market making investing in this volatile currency quite risky.
Cuban spoke out on X in response to Coinbase CEO Brian Armstrong’s thoughts about cryptocurrency deregulation.
Looming Deregulations
In a recent post on X, Armstrong explained why crypto exchanges like Coinbase shouldn’t have to evaluate every newly listed cryptocurrency.
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“We need to rethink our listing process at Coinbase, given that approximately 1 million tokens are created and growing weekly. High-quality problem to have, but evaluating each one by one is no longer feasible,” Armstrong stated.
However, Cuban, an early adopter of cryptocurrency, thinks that eliminating regulations due to increased volume would be a “huge mistake.” Here’s why.
Mark Cuban: This Is a ‘Huge Mistake’
In response to Armstrong’s post on X, Cuban had a lot to say:
“No. Huge mistake. There are 1 million tokens a week because there is no registration. We need a simple registration form tailored towards meme coins; Otherwise, the junk will overwhelm the limited quality and hurt the industry,” Cuban explained.
Cuban furthered his point by saying there are enough KYC (know your customers) tools to screen cryptocurrencies before they become available for trading. These tools help businesses verify customer identities and comply with regulations.
It’s important to remember that cryptocurrency is still an evolving frontier and to be cautious when investing your money. Diversification is key: Never put all your eggs in one basket. By limiting your crypto investments, you can mitigate financial risk.
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This article originally appeared on GOBankingRates.com: Mark Cuban Said Doing This With Crypto Regulations Would Be a ‘Huge Mistake’
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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