Billionaire investor and Shark Tank star, Mark Cuban Recently announced that everything Meme coins She is a rug puller on the podcast. However, this statement contradicts his well-known support and love Dogecoin (DOGE)the first ever meme coin and one of the most popular cryptocurrencies on the market.
Mark Cuban: All meme coins are ‘rug pulls’
In a Podcast With Radio Farrokh on October 3, Cuban stated that all meme-based cryptocurrencies are You pull out the rugWhich implies that these currencies are scams designed to deceive investors. When asked about his view on meme currencies in the market, Cuban explained that the appeal of these digital assets comes largely from the fun meme theme and strong support from the community.
Despite his public support of Dogecoin, Cuban compared trading meme coins to playing roulette or musical chairs. He stressed that the attractiveness behind these currencies lies in their unpredictability and volatility. He also noted that the value of most coins is It is strongly influenced by market trends and social sentiment, which often rises as more people join in Decreases as sentiment turns negative.
The Shark Tank star also pointed out that there is no real reason for meme coins to remain sustainable in the cryptocurrency market. This statement can be attributed to the meme coin’s general lack of real utility and intrinsic value, especially compared to household cryptocurrency 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 You are likely to make profits For lucky investors. He also noted that no one was under any illusion that meme currencies were sound investments, but their appeal lay in their playful, meme-driven nature. Tendency to rise significantly.
He also made his point clear Cryptocurrencies built on memes Seeing them as potential draws, Cuban admitted that he was often tempted to invest in these volatile coins. He revealed that while he considered trading several cryptocurrencies, he ultimately refrained from doing so due to their unstable and unpredictable nature.
Is Dogecoin a rug-pulling game?
Despite stating that all meme coins were rug pulls, Cuban has regularly shown strong support for Dogecoin, the leading meme-themed coin. Earlier this year, the famous billionaire investor It was revealed That the Dallas Mavericks, the American professional basketball team he owns, still accepts Dogecoin as a means of payment.
Additionally, Cuban has been known to speak favorably about Dogecoin, even stating in his recent podcast with Farokh Radio that he sees utility and token store of value in Dogecoin and other cryptocurrencies like Bitcoin and Ethereum.
Cuban doubts about sustainability and Legality of currencies meme This was echoed in a recent report by BDC Consulting which highlights the growing number of dead meme coins. the a report It reveals that as of March 2024, there were over 2,000 meme projects, yet 89% of these coins had a market cap of between $0 and $1,000, while only 5% exceeded a market cap of $10 million.
The report also states that 40% of meme projects are repeatedly affected by pump-and-dump schemes while 30% of them turn into minor withdrawals. However, based on Cuban’s recent statements on the podcast, 100% of Memetic coins are a carpetwhich means that even the beloved Dogecoin, which is the number one meme coin, may fall into this category.
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