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Billionaire investor and technology entrepreneur Mark Cuban has labeled all memecoins as potential exit scams with no real-world utility, in recent remarks about memecoins. sparked community outrage. His statement contradicts his public support and love for Dogecoin, the OG meme coin.
Mark Cuban: “Meme coins are rugs”
During a recent appearance on the Rag Radio Podcast, Shark Tank investor Mark Cuban described meme trading as a game of “musical chairs” in which all participants gamble. Cuban observed that meme coins require a strong community but lack staying power.
“Every meme coin is like pulling the rug under construction, right? Because other than the fun of it and seeing when more people come together and the token goes up in value, there’s no real reason why it’s going to stay around. Because there’s no reason,” the billionaire told an interviewer.
Cuban also posited that the meme coin market is fundamentally supported by the Greater Fool Theory. The Greater Fool Theory is a market theory that states that an investor can purchase an asset without an underlying bullish factor and still earn a profit by offloading that asset to another investor. An investor who buys an overvalued asset will cough up even more money for that asset, based on the same assumption that he or she can sell the asset at a profit to someone else who will pay him more. You can repeat the same process by acquiring .
“Part of the meme coin game is timing it to see if you’re going to make money or lose money,” Cuban explained. “It’s like flipping a coin. It’s like playing roulette. No one is stupid enough to think this is a great investment — even if they’re on Reddit or Telegram saying, ‘This is the best meme coin of all time.’ Even if I said that. To the moon, baby! ”
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Shiba Inu advocate Abraham Naidoo argued that SHIB does not fit into this category. He cited ongoing developments such as the Ethereum Layer 2 blockchain Shibarium and ShibaHUB, and emphasized that these projects make the Shiba Inu more than just a meme.
Even if it were true, I’d rather put my money into meme coins than anything else @mcuban must provide
— Galyan (@galyan1018) October 3, 2024
So, is Dogecoin also a rug pull?
Despite stating that all meme coins are ragpulls, Cuban has regularly expressed strong support for Dogecoin, the leading dog-themed meme coin. Earlier this year, the famous billionaire investor revealed that his former NBA team, the Dallas Mavericks, still accepts Dogecoin as payment for merchandise purchases.
He previously claimed that DOGE has more potential applications than Charles Hoskinson’s Cardano (ADA). In a recent interview with Rag Radio, Cuban also said that he recognizes the usefulness of Dogecoin.
“And then there’s Dogecoin, which is more about fun and community,” he said. “It really depends on where you are. And I’m a proponent of all of those. I see the fun of it, the practicality of it, and the value of it. So it really depends on where you want to go. it’s different.”
Cuban’s comments about meme coins being a lag pull are likely in reference to smaller cap tokens, such as those debuting on launchpads such as Pump.fun. Such coins are often pump-and-dump and don’t attract much attention.
Meanwhile, Dogecoin has even attracted the attention of the world’s richest man, Elon Musk. Tesla’s CEO admitted earlier this year that he has a “soft spot” for dog-themed cryptocurrencies.
