American entrepreneur Mark Cuban believes that the next meltdown could stem from so-called wash trading schemes.
In a recent interview with The Street, he said the next possible implosion is the discovery and removal of wash trades on central exchanges.
"There are supposedly tens of millions of dollars in trades and liquidity for tokens that have very little utilization" he told The Street.
His statement comes after the FTX collapse rocked the crypto industry.
Wash trade refers to an illegal activity in which a single trader buys and sells the same security in order to generate misleading market information.
Suppose a trader XYZ and a brokerage firm collude to buy and sell stock ABC rapidly.
Noticing activity on the stock, other traders may put money into ABC to profit from its price movements. XYZ then shorts the stock, thereby profiting from its downward price movement.