Famous investor and cryptocurrency proponent Mark Cuban said he never held any Terra (CRYPTO: LUNA) or TerraUSD (CRYPTO: UST) and also refused to Anchor Protocol (CRYPTO: ANC) due to concerns over their fundamentals.
What Happened: Cuban told Fortune in an interview published on Thursday he “turned down investing in Anchor” and was “not involved at all” and “never have owned any” Terra or TerraUSD.
He explained that “crypto is like investing in any other business. You look to see if it’s a sustainable product or service.”
See Also: How To Earn Free Crypto
TerraUSD lost its peg on Saturday after a major dump on a decentralized finance (DeFi) platform, which led to arbitragers burning UST in exchange for Terra increasing its supply and selling it in mass to buy more UST to burn again. All of this resulted in UST’s further de-peg, a 97% Terra crash and $11.7 billion vanishing from LUNA’s supply alongside $14 billion from TerraUSD’s supply — all in under 24 hours.
While the crypto market lost a lot of capital due to the event, Cuban warned that “stocks are going through the exact same thing.”
“When money is cheap, people have to put it somewhere and search for returns,” Cuban said. “When it’s no longer cheap and prices start to go down, people try to protect their gains.”
Photo: Courtesy of Gage Skidmore on Flickr