Mark Cuban Doesn't Invest in Meme Coins. Here's Why.

As the name implies, meme coins aren't meant to be taken seriously. Some may help investors make a quick profit, while others lose their value right away

Billionaire investor Mark Cuban is not a fan of meme coins, he recently stated in a YouTube interview with social media personality Jules Terpak.

"I'm not a fan of meme coins," Cuban said. "Obviously, it's a hustle. There's no there there. And so it's just like a game of musical chairs with money. Some people make money and some people won't."

Cuban's comments came in response to the digital debut of the HAWK coin in early December. The coin was launched by 22-year-old Haliey Welch, who became known as the "hawk-tuah" girl after her comments during a man-on-the-street style interview went viral.

The HAWK coin quickly spiked to a market capitalization of nearly $500 million, before plummeting to $28 million about 24 hours later, according to DEX Screener, a platform that tracks data for various tokens.

Cuban said he sympathized with Welch in the situation. "It wasn't something she fully understood, but she trusted the people around her," he said. "I'm not mad at Haliey at all. I feel bad for her that she got put in this position. … She'll be fine and, you know, what's done is done."

Investors sued the group behind the HAWK coin on Thursday, alleging that they failed to register the meme coin properly.

"I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter," Welch posted to X on Friday.

Welch did not immediately respond to CNBC Make It's request for comment.