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American billionaire entrepreneur Mark Cuban has come out swinging against crypto firms that are operating on "cheap, easy money," pointing out that they will inevitably fail during the crypto downturn buffeting the industry.

“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 told Fortune.

Cuban also quoted fellow billionaire Warren Buffet's aphorism, “When the tide goes out, you get to see who is swimming naked.”

He previously said the crypto industry was undergoing a period of turmoil comparable to the dot-com bubble.

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Nevertheless, Cuban struck a more buoyant tone about “disruptive applications and technology released during a bear market," which he says can always locate a new market and thrive. In the past, he also extolled the merits of businesses relying on Ethereum-based smart contracts, which he expects to eventually supplant software as a service. Cuban is a noted Ethereum maximalist and has invested in several companies working in the space.

“What really changed everything was smart contracts,” Cuban previously said last year. “Smart contracts came along, and that created DeFi and NFTs. That’s what changed the game. That’s what got me excited. That’s why it’s a lot like the internet."