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Billionaire investor and Shark Tank star, Mark Cuban lately declared that every one meme coins are rug pulls in a podcast. Nevertheless, this assertion contradicts his well-known assist and love for Dogecoin (DOGE), the first-ever meme coin and one of the crucial well-liked cryptocurrencies out there.
Shark Tank star and billionaire investor Mark Cuban recently stated in a podcast that all meme coins are rug pulls. However, this statement seems to contradict his well-known support and love for Dogecoin (DOGE), the first-ever meme coin and one of the most popular cryptocurrencies in the world.
Mark Cuban: All Meme Coins Are “Rug Pulls”
In a podcast with Farokh Radio on October 3, Cuban said that all meme-based cryptocurrencies are rug pulls, implying that these coins are scams designed to trick investors. When asked about his view on meme coins in the market, Cuban explained that the appeal of these digital assets stems largely from their fun meme theme and strong community backing.
Despite his public support for Dogecoin, Cuban likened trading meme coins to playing a game of roulette or musical chairs. He highlighted that the attraction behind these coins is their unpredictability and volatility. He also noted that the value of most meme coins is heavily influenced by market trends and social sentiments, often surging as more people participate and declining as sentiment turns negative.
The Shark Tank star also stated that there was no real reason for meme coins to remain sustainable in the crypto market. This statement could be attributed to meme coin’s general lack of real-world utility and intrinsic value, especially in comparison to household crypto names like Bitcoin, Ethereum, and Solana.
Using the recently launched meme coin, MooDeng, as an example, Cuban suggested that meme-based cryptocurrencies were a fun but risky investment that could potentially yield profits for lucky traders. He further noted that, while nobody was under the illusion that meme coins are sound investments, their appeal lay in their playful meme-driven nature and propensity to surge dramatically.
As he elaborated on his view of meme-based cryptocurrencies being potential rug pulls, Cuban admitted that he has often been tempted to personally invest in these volatile coins. He revealed that while he has considered trading several meme coins, he ultimately refrained from doing so because of their unpredictable and volatile nature.
Is Dogecoin A Rug Pull?
Despite stating that all meme coins were rug pulls, Cuban has consistently shown strong support for Dogecoin, the leading doggy-themed meme coin. Earlier this year, the renowned billionaire investor announced that the Dallas Mavericks, an American professional basketball team he owns, still accepts Dogecoin as a payment method.
Furthermore, Cuban is known to speak favorably about Dogecoin, even stating in his recent podcast with Farokh Radio that he sees the utility and store of value attribute in Dogecoin and other cryptocurrencies like Bitcoin and Ethereum.
Cuban’s skepticism regarding the sustainability and legitimacy of meme coins is highlighted in a recent report by BDC consulting which showcases the increasing number of dead meme coins. The report reveals that as of March 2024, there were over 2,000 meme coin projects, but 89% of these coins had a market capitalization of zero to $1,000, while only 5% surpassed a market capitalization of $10 million.
The report also notes that 40% of meme coin projects are regularly impacted by pump and dump schemes, while 30% become rug pulls. However, based on Cuban’s recent statements in the podcast, 100% of meme coins are rug pulls, meaning even his beloved Dogecoin which is the first meme coin, could fall into this category.
Featured image generated with Dall.E, chart from Tradingview.com
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