Mark Cuban Believes Many Crypto Startups Will Not Survive this Crypto Winter

American billionaire, Mark Cuban is convinced many of the current projects in the digital currency ecosystem will not survive this bear market. Cuban weighed in on the current outlook in the crypto industry in an interview with Fortune, he said crypto projects which are not anchored on a solid business model can easily faze out.

“In stocks and crypto, you will see companies that were sustained by cheap, easy money—but didn’t have valid business prospects—will disappear,” Cuban said.

Cuban also recalled a popular quote from Warren Buffett which noted that “when the tide goes out, you get to see who is swimming naked.” This statement was shared to define how those startups without good fundamentals are bound to see their flaws exposed should the current crypto winter be elongated beyond how it is.

The crypto industry saw its combined market capitalization slump below $1 trillion earlier this week as Bitcoin (BTC) touched an 18-month low of around $20,000. In reality, the ongoing rollercoaster of negative price correction over the past few weeks was ignited by the collapse of the Terra network’s UST algorithmic stablecoin.

While the industry is still reeling from the impacts of the $40 billion wiped away overnight through UST and LUNA collapse, Celsius Network announced the pause of its withdrawals citing extreme economic conditions earlier this week. With stakeholders seeing legacy protocols doing badly, the conviction to pull out their capital was exacerbated, leading to the unprecedented fall.

Mark Cuban is Not Giving Up Hopes Yet

Despite the ongoing mishaps pushing the likes of Coinbase Global Inc, BlockFi, and Gemini to retrench some of their staff, Mark Cuban is still optimistic that the ecosystem is poised to survive.

He noted that the “disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed.”

Cuban trusts the technology that is emanating from the digital currency ecosystem, and he noted that there is a potential for commercial smart contract platforms to displace some of the Software as a Service (SaaS) companies thriving today