Billionaire investor and Shark Tank star, Mark Cuban just lately declared that each one meme cash are rug pulls in a podcast. Nevertheless, this assertion contradicts his well-known assist and love for Dogecoin (DOGE), the first-ever meme coin and some of the common cryptocurrencies available in the market.
Mark Cuban: All Meme Cash Are “Rug Pulls”
In a podcast with Farokh Radio on October 3, Cuban acknowledged that each one meme-based cryptocurrencies are rug pulls, implying that these cash are scams designed to deceive traders. When requested about his view of meme cash available in the market, Cuban defined that the enchantment of those digital belongings comes largely from their enjoyable meme theme and powerful neighborhood backing.
Regardless of his public assist for Dogecoin, Cuban in contrast buying and selling meme cash to enjoying a recreation of roulette or musical chairs. He emphasised that the attract behind these cash lies of their unpredictability and volatility. He additionally identified that the worth of most meme cash is closely influenced by market developments and social sentiments, usually surging as extra folks take part and declining as sentiment turns destructive.
The Shark Tank star additionally famous that there was no actual purpose for meme cash to stay sustainable within the crypto market. This assertion may very well be attributed to meme coin’s normal lack of actual utility and intrinsic worth, particularly in comparison with family crypto names like Bitcoin, Ethereum, and Solana.
Utilizing the just lately launched meme coin, MooDeng for example, Cuban urged that meme-based cryptocurrencies had been a enjoyable however dangerous funding that would doubtlessly yield earnings for fortunate traders. He additional famous that, nobody was beneath the phantasm that meme cash are sound investments, however their enchantment lies of their playful meme-driven nature and propensity to surge dramatically.
As he elaborated on his view of meme-based cryptocurrencies being potential rug pulls, Cuban admitted that he has usually been tempted to put money into these risky cash. He revealed that whereas he has thought-about buying and selling a number of meme cash, he in the end kept away from doing so attributable to their unpredictable and unstable nature.
Is Dogecoin A Rug Pull?
Regardless of stating that each one meme cash had been rug pulls, Cuban has usually proven robust assist for Dogecoin, the main doggy-themed meme coin. Earlier this 12 months, the well-known billionaire investor disclosed that the Dallas Mavericks, an American skilled basketball group that he owns, nonetheless accepts Dogecoin as a fee methodology.
Moreover, Cuban is thought to talk favorably about Dogecoin, even stating in his current podcast with Farokh Radio that he sees the utility and retailer of worth attribute in Dogecoin and different cryptocurrencies like Bitcoin and Ethereum.
Cuban’s skepticism concerning the sustainability and legitimacy of meme cash is echoed in a current report by BDC consulting which highlights the rising variety of useless meme cash. The report reveals that as of March 2024, there have been over 2,000 meme coin initiatives, but 89% of those cash had a market capitalization of zero to $1,000, whereas solely 5% surpassed a market capitalization of $10 million.
The report additionally notes that 40% of meme coin initiatives are continuously impacted by pump and dump schemes whereas 30% develop into rug pulls. Nevertheless, based mostly on Cuban’s current statements within the podcast, 100% of meme cash are rug pulls, which means even his beloved Dogecoin which is the primary meme coin, could fall into this class.
Featured picture created with Dall.E, chart from Tradingview.com
