Famous Billionaire Draws Attention To These Altcoin Markets

Billionaire investor Mark Cuban is optimistic about the growth of DeFi or decentralized finance applications and thinks they will challenge traditional banks. Popular altcoin projects such as UNI, CAKE, RUNE, SNX, SUSHI, SRM are operating in the DeFi field.

Mark Cuban drew attention to the DeFi industry, where there are many altcoin projects

“The main benefit of DeFi is that it simplifies borrowing for personal purposes,” Cuban tweeted on Thursday in response to a discussion about DeFi. It is very difficult to borrow money from the bank. DeFi also allows anyone with funds to become a lender.”

DeFi applications aim to recreate traditional financial systems such as banks and exchanges with cryptocurrency. Most of them run on the Ethereum Blockchain. As Cuban points out, through DeFi lending, users can borrow cryptocurrency and earn interest as a lender, just as a traditional bank would do with fiat currency. The barrier to entry to these platforms is low compared to a traditional system. In most cases, the only requirement for getting a DeFi loan is the ability to provide collateral with other crypto assets.

Could DeFi end banking?

“Businesses, decentralized or otherwise, tend to benefit when they offer customers the path of least resistance to get what they want and/or need,” Cuban said. “DeFi is not monolithic. Competitive. It will evolve to meet customer needs.”

Cuban acknowledges that DeFi will not “automatically terminate banking” because “banks are not stupid,” but predicts that DeFi applications will continue to disrupt the traditional space. “I think DeFi will evolve in the same way as Fintech has chosen features that open doors to applications that have won millions of customers,” he said.

Some industries are against change. This is the innovator’s dilemma. Banks could have been simplified/automated to the point where DeFi was not needed. They didn’t. Old [operasyonlarda] they are so stuck that they are interrupted by simple fintech apps.

Cuban has been a longtime supporter of DeFi and the crypto space as a whole. It has an extensive crypto portfolio with investments in Bitcoin, ETH, DOGE and other altcoins, as well as NFTs (non-fungible tokens) and crypto-focused companies.

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