Mark Cuban sees all memecoins except Dogecoin as potential rugs due to their volatility and lack of long-term purpose, but finds excitement in this unpredictability. The former head owner of the Dallas Mavericks likened meme coin trading to gambling or flipping a coin. Despite the risks, Cuban admits that he considers buying meme coins from time to time, but tells himself it’s not a wise move.
All memecoins are ragpulls, but Dogecoin is the king or the original of memecoins. This is the logic of Mark Cuban, who said it’s the inherent volatility of memecoins that makes them “very exciting.”
Cuban told Rag Radio’s Farokh Sarmad:
Every meme coin is a rug in progress, right? Because there’s no real reason for it to stick around other than the fun of it and seeing more people flock together to see when the value of the token increases.
mark cuban
that’s reality
Meme coins are typically characterized by extreme volatility and become popular through internet memes, celebrities (such as politicians), or events. They often rise and fall in value faster than many crypto assets, but Cuban acknowledged that’s the appeal of these tokens, likening them to gambling.
Part of the meme coin game is timing yourself to see if you make or lose money.
mark cuban
The former Shark Tank personality said that while some meme coins, such as Dogecoin, benefit from high-profile backing from celebrities like Elon Musk, many other meme coins have no backing. He pointed out that there is no such thing, and that after a short period of popularity, it quickly disappears.
Related: Australian analyst reveals driving force behind latest meme coin craze, SUI’s big push to build community
don’t make fun of me
Cuban also compared investing in small meme tokens to a coin flip or roulette, warning that many traders approach these coins with unrealistic expectations of success. Checking the Dune Analytics data can be helpful in this regard. Only 1.41% of tokens created with Memecoin generator Pump.fun are successfully launched and reach a market capitalization of more than US$69,000 (AU$100,000).
The low success rate clearly indicates that most meme coins are not gaining significant traction in the market and supports Cuba’s comparison of meme coin trading to gambling. In fact, the odds of success are lower than many casino games, which is insane when you think about it.
Cuban admitted that he sometimes gets a little depraved and asks himself the dreaded question that has probably crossed your mind: “Should I buy a meme coin?”
But he quickly remembered that it was a foolish thing to do, and eventually recognized the appeal (and risk) of this space.
