Bitrabo Editorial
Mark Cuban, the billionaire investor and star of Shark Tank, recently stated in a podcast that he believes all meme coins are scams. This statement seems to contradict his known fondness for Dogecoin (DOGE), which is the original meme coin and remains popular in the cryptocurrency world.
Mark Cuban: All Meme Coins Are “Rug Pulls”
During a podcast with Farokh Radio on October 3, Cuban claimed that all cryptocurrencies based on memes are essentially rug pulls, suggesting these coins exist to trick investors. When discussing the appeal of meme coins, he mentioned that their popularity largely stems from engaging themes and a dedicated community.
Although he has publicly backed Dogecoin, Cuban likened trading in meme coins to games of roulette or musical chairs. He pointed out the enticing yet unpredictable nature of these cryptocurrencies, which often experience rapid shifts in value depending on market trends and public sentiment.
Cuban further explained that meme coins lack a sustainable foundation in the long term, mainly due to their limited utility and value, especially when compared to established cryptocurrencies like Bitcoin, Ethereum, and Solana.
Taking the recent meme coin launch, MooDeng, as an example, Cuban indicated that while meme coins can be an exciting gamble with potential profit for some investors, it’s clear that these assets are not reliable investments. The humor and community-driven nature of meme coins is what attracts many investors, despite the inherent risks.
While discussing the risk associated with meme coins, Cuban admitted that he has been tempted to invest in them but has chosen to hold back due to their erratic and unreliable nature.
Is Dogecoin a Rug Pull?
Despite labeling all meme coins as potential scams, Cuban has consistently supported Dogecoin, the leading meme coin in the market. Earlier this year, he mentioned that his basketball team, the Dallas Mavericks, continues to accept Dogecoin as a form of payment.
Moreover, Cuban is vocal about his favorable view of Dogecoin. In his podcast with Farokh Radio, he expressed that he sees value in Dogecoin and compares it positively with cryptocurrencies such as Bitcoin and Ethereum.
Cuban’s doubts about the viability of meme coins are backed by a recent report from BDC Consulting, which highlights the growing number of unsuccessful meme coins. The report indicates that by March 2024, out of over 2,000 meme coin projects, 89% had a market cap between zero and $1,000, with only 5% exceeding $10 million in market capitalization.
The report also cites that 40% of these projects face issues from pump and dump schemes, while 30% eventually become rug pulls. Cuban’s podcast claim that all meme coins are scams raises questions even about Dogecoin, his favored meme coin.