Mark Cuban Is Watching These 6 Cryptos Right Now. Should You?

The recent slump in prices hasn't dampened Mark Cuban's enthusiasm for crypto, though the popular Shark Tank judge is concerned there's not enough innovation in the market. In an interview with Altcoin Daily, the Dallas Mavericks owner stressed that just because a project is crypto-related, it still needs a solid business case. "To be a real business, you have to be a real business," he said. "Crypto doesn't change any of that."

The billionaire investor says crypto caught his attention because he's always looking for new ways to use technology. He's long been excited by the potential for smart contracts to disrupt existing businesses. So which cryptos is he excited about at the moment? Here are six altcoins Cuban says he owns:

1. Injective Protocol (INJ)

Injective Protocol is perhaps the most accessible altcoin on Cuban's list as it's available from Gemini, Kraken, and Binance. Injective is a smart contract crypto that's aimed at financial applications. The decentralized protocol has advanced features like margin and derivatives trading and operates across different blockchains. In Cuban's words, "Not an easy business but they have a chance."

2. Klima DAO (KLIMA)

Klima offers tokenized carbon credits. Cuban points out that it is easier for him to offset his carbon through KLIMA tokens than through other means. He says if it doesn't pay off as an investment, the worst case scenario is that he'd still have offset a certain number of tons of carbon.

3. ApeCoin (APE)

ApeCoin is the native token of the Bored Ape Yacht Club (BAYC), the celebrity NFT collection that grants owners exclusive membership. Cuban says he owns APE tokens, though he isn't a fan of the BAYC land sale. He labeled buying real estate in a metaverse, "Super, mega, immaculately dumb"

4. Blockto (BLT)

Blockto is a cross-chain smart contract crypto wallet that Cuban invested in originally in 2021. He's a strategic adviser to the project, which allows people to access crypto, NFTs, and dApps on Flow (FLOW), Solana (SOL), Binance Smart Chain (BSC), Polygon (MATIC), Avalanche (AVAX), Ethereum (ETH) and Tron (TRON) blockchains.

5. Alethea Artificial Liquid Intelligence Token (ALI)

Alethea takes NFTs to another level. The project builds intelligent NFTs that have some form of artificial intelligence (AI) personality. Cuban says integrating AI into NFTs to create "virtual humans" could lead to some unique applications.

6. Ocean Protocol (OCEAN)

Ocean says data is the "new asset class" and it allows people to buy and sell data using its tokens. It fits with various web 3 projects that move data ownership from big corporations to individuals.

Should you buy?

If you're looking to follow Mark Cuban and pick up some of these smaller cryptos, be aware that he's probably not in the same financial position as you. Cuban is a billionaire and can afford to take a chance on high-risk projects that may not succeed. The golden rule of crypto investing is to only invest money you can afford to lose.

Bear in mind that Cuban himself said that Ethereum (ETH) and Bitcoin (BTC) are his most successful crypto investments. Less-established cryptos could generate higher percentage gains than established crypto giants, but that potential for higher gains comes with a corresponding risk.

Do your own research, and think about how these projects might fit into your wider portfolio. Many experts suggest crypto make up only a small percentage of your overall investments, and that higher-risk altcoins make up a small percentage of your crypto holdings. It's also important to try to evaluate them through a long-term lens -- consider how these altcoins might perform in the coming five to 10 years or more.

Finally, there's a practical issue. Many of these tokens are not available from top crypto exchanges, which means it isn't easy to buy them. For example, to buy KLIMA, you'd need to use QuickSwap, a decentralized exchange on Polygon's blockchain.

Bottom line

Ultimately, if a successful investor like Mark Cuban has picked these projects out of the thousands of cryptocurrencies on the market, they could be worth a closer look. But don't buy them just because Cuban did. Take your time, do your own research, and make your own decisions based on your financial situation.

This article originally appeared in The Motley Fool.

Emma Newbery has positions in Avalanche, Bitcoin, Ethereum, Injective Protocol, Polygon and Solana. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Ethereum, Injective Protocol, Polygon and Solana. The Motley Fool has a disclosure policy.