Billionaire investor and Shark Tank star, Mark Cuban recently announced that all meme coins there are rug pulls on the podcast. However, this statement contradicts his known support and love Dogecoin (DOGE)the first ever meme coin and one of the most popular cryptocurrencies in the market.
Mark Cuban: All Meme Coins Are “Rug Pulls”
In a a podcast with Farokh Radio on October 3, Cuban said that all meme-based cryptocurrencies are the rug pullswhich means these coins are a scam designed to deceive investors. When asked about his opinion of meme coins in the market, Cuban explained that the appeal of these digital assets comes mainly from their fun meme theme and strong community support.
Despite his public support for Dogecoin, Cuban compared trading in meme coins to playing a game of roulette or musical chairs. He emphasized that what is attractive about these characters is that they are unpredictable and changeable. He also pointed out that the value of many meme coins heavily influenced by market trends and community sentiment, which tends to grow as more people join in as well decrease as the feeling turns negative.
The Shark Tank star also noted that there is no real reason for meme coins to remain sustainable in the crypto market. This statement can be attributed to the meme character’s general lack of real utility and intrinsic value, especially when compared to domestic crypto names like Bitcoin, Ethereum, and Solana.
Using the recently launched meme coin, MooDeng as an example, Cuban suggested that meme-based cryptocurrencies are an exciting but potentially risky investment. which may yield profit for lucky investors. He also noted that, no one was under the illusion that meme coins are a sound investment, but their appeal lies in their meme-based nature and tendency to rise dramatically.
As he elaborated on his vision Meme-based cryptocurrencies As the draw of rugby may be, the Cuban admitted that he is often tempted to invest in these volatile currencies. He revealed that although he had considered trading meme coins, he ultimately refused to do so due to their unpredictable and unstable nature.
Is Dogecoin a Rug Pull?
Despite saying that all meme coins have been pulling, Cuban has always shown strong support for Dogecoin, the leading doggy-themed meme coin. Earlier this year, a famous billionaire investor revealed which the Dallas Mavericks, an American professional basketball team that owns, still accepts Dogecoin as a payment method.
Additionally, Cuban is known to speak highly of Dogecoin, even saying in his recent podcast with Farokh Radio that he sees utility and a store of value in Dogecoin and other cryptocurrencies such as Bitcoin and Ethereum.
Cuban doubts about sustainability and the legitimacy of meme coins highlighted in a recent report by BDC Consulting which highlights the increasing number of dead coins. I report reveals that as of March 2024, there were more than 2,000 meme coin projects, however 89% of these coins had a market capitalization of zero to $1,000, while only 5% exceeded a market capitalization of $10 million.
The report also notes that 40% of meme coin projects are often affected by pumping and dumping systems while 30% become drag wheels. However, based on recent Cuban statements on the podcast, 100% of Meme coins are rug pullsmeaning even his beloved Dogecoin which is the original meme coin, may fall into this category.
The featured image was created with Dall.E, a chart from Tradingview.com