Billionaire crypto investor and owner of the Dallas Mavericks Mark Cuban says the current market downturn reminds him of a well-known adage uttered by Warren Buffett.

Cuban sees a parallel between the rise and fall of crypto markets and projects, and the 91-year-old ‘Oracle of Omaha’s aphorism that:  “Only when the tide goes out do you discover who’s been swimming naked.”

Cuban’s observation was revealed during a June 16 interview with Fortune in which he discussed what he sees as flawed business models of some crypto projects that have fallen on hard times over the past two months.

“In stocks and crypto, you will see companies that were sustained by cheap, easy money—but didn’t have valid business prospects—will disappear,” the Shark Tank investor said. 

“Like [Warren] Buffett says, ‘When the tide goes out, you get to see who is swimming naked.’”

Some of the companies that appear to have been swimming naked included Terra, Celsius, and Three Arrows Capital.

The Terra ecosystem, now known as Terra Classic, completely collapsed by the middle of May. The fallout from that collapse has seen tens of billions in losses to investors, while a manhunt has ensued for the founder and CEO Do Kwon by several regulatory bodies.

The Celsius staking and lending platform is fighting to stay solvent if its recent pausing of withdrawals is any indicator. Investment firm Three Arrows Capital is reported to have faced a liquidation to the tune of $400 million and has been unable to meet margin calls.

Despite the gloomy short term outlook for crypto, Cuban said that…

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