A potential collapse of the lending platform, Celsius has led Investors to be increasingly concerned about the spillover effect. The “Shark Tank” star argued that more businesses built on hype and without valid prospects will disappear after weighing on the struggling ecosystem.

Cuban predicted another possible shake-out not just in stocks but also the crypto market, in an interview with Fortune. Many companies would not survive this crash, said the Dallas Mavericks owner.

“In stocks and crypto, you will see companies that were sustained by cheap, easy money—but didn’t have valid business prospects – will disappear. Like [Warren] Buffett says, ‘When the tide goes out, you get to see who is swimming naked.’”

As the cryptocurrency market increasingly moves in sync with tech stocks which proved costly for investors, the subsequent Terra implosion further fueled the prevailing fears in the crypto space.

The investors worried about a broader contagion as a liquidity crisis takes place at Celsius. Singapore-based hedge fund Three Arrows Capital, facing possible insolvency, have further damped the sentiment.

Despite the extreme pessimism in the industry brought about the two high-flying companies on the brink of a crash in the bear market, the tech billionaire believes that disruptive applications and innovations released during this time will always find a market and succeed.

As the correlation between the Nasdaq 100 and the crypto reached near all-time high this year, Bitcoin acted less as an inflation hedge. Cuban said that tech stocks and crypto will continue to face pressure until the current rush of rate hikes is priced in but asserted that “game-changing applications” would evade that stress.

“If rates go up, it will struggle till it’s priced in. The exception, as with stocks, is for new, game-changing applications.”

Recently, the crypto industry saw massive job cuts. Announcing lay-offs, Coinbase, Crypto.com, and BlockFi shook things up in the crypto industry. As a positive note, exchanges such as Binance, Kraken, and layer 2 sidechain Polygon are looking to increase their headcount with new hires.

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