Mark Cuban, the famous investor in Shark Tank, is known as a famous Dogecoin advocate, but recently, he sounded decidedly unenthusiastic, saying, “I think every meme coin is essentially a rug pull waiting to happen.”
What’s more surprising, though, is he even said this volatility is, at least partially, what makes them so exciting.
Mark Cuban: Meme Coins Are Rug Pulls, Except DOGE
The fact is, meme coins are very volatile kinds of cryptocurrencies in which sensational hype thrives from traders speculating on their prices.
Anything from internet memes to celebrities and trending events creates or influences some meme coins to gain overnight fame. However, after numerous accounts of celebrities were hacked, outrageous stunts involving a developer set them on fire, among others.
He stated:
“Every single meme coin is a rug pull in the works, right? Because there’s no real reason for it to stick around other than the fun of it. Meme coins are all a game of musical chairs.”
Mark Cuban has been one of the most vocal and long-time advocates of Dogecoin. He even once offered it as a means of payment for merchandise transacted through the NBA’s Dallas Mavericks.
The entrepreneur previously claimed that DOGE has more possible use cases compared to Cardano. He said that after Hoskinson’s layer-1 blockchain reached an on-chain volume milestone.
Recently, the billionaire appeared to show his love for DOGE further, citing the cryptocurrency’s relative value besides leading cryptocurrencies. Even though Mark Cuban acknowledged that Bitcoin is a store of value and a hedge against fiat currency, Ethereum has a smart contract capability that enables dApps. According to him, Dogecoin also has a relatively meritorious place in the crypto ecosystem.
He said:
“And then there’s Dogecoin, which is more for fun and community. It just really depends on where you’re at. And I’m a proponent of all of them. I see the fun in it, I see the utility in it, and I see the store value of it. So it really depends on where you want to go.”
Mark Cuban further added that all meme coins could be rug pulls. This assertion probably refers to lower-market cap tokens, some of which were launched on platforms such as Pump.fun and Moonshot.
Many of them lack the full-scale support from whales and companies that the more prominent cryptocurrencies boast. Because of that, they tend to be super volatile in price action. Only a few could sustain a big run, with even fewer remaining long afterward.
Meme Coins Are a Game, Not an Investment
By contrast, Dogecoin boasts high-profile proponents, including Elon Musk, the owner of Twitter and Tesla, and Cuban. Still, unlike Musk, Mark Cuban is still backing the Democratic Party presidential nominee Kamala Harris.
Recently, the entrepreneur said that if Kamala Harris wins the US Presidential Election, he’d like to replace Gary Gensler as head of the SEC. He has been one of the most vocal advocates for the crypto industry against what he sees as an aggressively positioned SEC when it comes to cryptocurrency regulation.
Sure, a lot of smaller tokens can get a smattering of flash-in-the-pan attention from social media influencers. However, they usually don’t have longer-term interest or backing to make them survive in competitive crypto.
Mark Cuban also explained that part of the game in meme coins is to time it to see if one will make or lose money. He compared it to flipping a coin or playing roulette. The billionaire stated that nobody is so naive to think this is a great investment—even if they all go on Reddit or Telegram and claim that it’s the best meme coin ever, urging others to “aim for the moon.”
The entrepreneur likened trading in meme coins to gambling. He said meme coins are especially appealing in states where gambling has been outlawed. On the meme coin site Pump.fun, the odds against a token reaching a $69,000 market cap were roughly 1.5 percent. That is low compared with the house advantage on most casino games.
Still, traders could profit on coins that never reached that relatively low threshold. Mark Cuban also admitted to looking at meme coins himself. All the time, he said, he was seriously considering buying some. The billionaire likened it to flipping a coin and being somewhat overwhelmed that it would land on the right end. It is a game, he said.
The post Dogecoin Fan Mark Cuban Slams Meme Coins, Here’s Why appeared first on CoinGape.
