Billionaire investor Mark Cuban has hyped up strong reactions from the memecoin community after labeling all memecoins as potential exit scams with no real-world value.
This statement stands in contrast to his previous support for Dogecoin, the original memecoin.
Cuban’s critique of memecoins
During an appearance on the Rug Radio podcast, Cuban described trading in memecoins as a game of “musical chairs,” where participants are essentially gambling.
He noted that while memecoins can create strong communities, they often lack long-term viability.
“Every single memecoin is a rug pull in the works, right? There’s no real reason for it to stick around other than the fun of it and to see when the token goes up in value because more people came in.”
Cuban explained that the memecoin market is largely driven by the Greater Fool Theory.
This theory suggests that investors can buy overvalued assets without any solid reasons and still sell them to someone else at a profit.
He told that part of the game is timing, saying, “It’s like flipping a coin; it’s like playing roulette.”
He believes that even those who promote these coins online know they aren’t great investments.
The debate over Dogecoin and Shiba Inu
Abraham Naidoo, a well-known advocate for Shiba In, disagreed with Cuban’s assessment, arguing that SHIB is more than just a memecoin due to ongoing projects like Shibarium, which is an Ethereum layer-2 blockchain.
Even if that was true I would rather put my money in meme coins than anything @mcuban has to offer
— Galyan (@galyan1018) October 3, 2024
He believes these developments give Shiba Inu real utility.
Despite calling all memecoins potential scams, Cuban consistently shown strong support for Dogecoin.
Earlier this year, he mentioned that the Dallas Mavericks, the NBA team he previously owned, still accepts Dogecoin for merchandise purchases. He has even claimed that DOGE has more potential uses than Cardano.
In his recent interview, he acknowledged Dogecoin’s fun and community aspect, stating, “It really depends on where you’re at. I’m a proponent of all of them.”
A good joke, just a little pricey
Cuban’s comments about memecoins being scams likely refer to smaller tokens launched on platforms like Pump.fun.
These types of coins often turn out to be pump-and-dump schemes without any real traction.
Meanwhile, Dogecoin continues to gain attention from high-profile figures like Elon Musk, who admitted earlier this year that he has a “soft spot” for the dog-themed cryptocurrency.
Either way, Cuban’s remarks could influence how investors view not just memecoins but also their potential risks and rewards, and maybe they will think before buy something.
