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Mark Cuban: Meme Coins Are Rug Pulls
Throughout a latest look on the Rug Radio podcast, Shark Tank investor Mark Cuban described meme buying and selling as a sport of “musical chairs” whereby all individuals gamble. Cuban noticed that meme cash can entail robust communities however don’t have endurance.
“Each single meme coin is a rug pull within the works, proper? As a result of there’s no actual motive for it to stay round aside from the enjoyable of it and to see when the token goes up in worth as a result of extra individuals got here in,” the billionaire instructed his interviewer.
Cuban additionally postulated that the meme coin market is mainly buoyed by the Larger Idiot Idea — a market thesis that states that buyers should purchase property with none elementary bullish elements and nonetheless offload the property to a different investor at a revenue. The investor who buys the overvalued asset can then repeat the method by getting one other particular person who will cough out much more cash for the asset primarily based on the identical assumption that they’ll promote the asset at a revenue to another person keen to pay extra.
“A part of the sport in meme cash is to time it to see in the event you’re going to make or lose cash,” Cuban defined. “It’s like flipping a coin; it’s like enjoying roulette. No one is so silly to suppose this can be a nice funding — even when all of them go on Reddit or Telegram and say: ‘That is the most effective meme coin ever. To the moon baby!’”
 
Shiba Inu advocate Abraham Naidoo contended that SHIB doesn’t match on this classification. He cited ongoing developments like Shibarium — the crypto’s Ethereum layer-2 blockchain — and ShibaHUB, stressing that these initiatives make Shiba Inu greater than only a meme.
So, Is Dogecoin Additionally A Rug Pull?
Regardless of stating that each one meme cash have been rug pulls, Cuban has repeatedly voiced robust help for Dogecoin, the highest doggy-themed meme coin. Earlier this 12 months, the well-known billionaire investor revealed that the Dallas Mavericks, the NBA staff he beforehand owned, nonetheless accepts Dogecoin as a payment for merchandise purchases.
He additionally beforehand asserted that DOGE has extra potential purposes than Charles Hoskinson’s Cardano (ADA). Even in his latest interview with Rug Radio, Cuban stated he noticed the utility of Dogecoin.
“After which there’s Dogecoin, which is extra for enjoyable and neighborhood,” he stated. “It simply actually is determined by the place you’re at. And I’m a proponent of all of them. I see the enjoyable in it, I see the utility in it, and I see the shop worth of it. So it actually is determined by the place you wish to go.”
Cuban’s remark about meme cash being rug pulls is probably going about smaller cap tokens like these debuted on launch pads similar to Pump.enjoyable. Such cash are sometimes pump-and-dump schemes that by no means garner any substantial traction.
In the meantime, Dogecoin has attracted the eye of even the world’s richest man, Elon Musk. The Tesla CEO admitted earlier this 12 months that he has a “delicate spot” for the canine-themed cryptocurrency.
Industry Responds To Billionaire Mark Cuban Calling Dogecoin, Shiba Inu, Meme Coins ‘Rug Pulls In The Works’ ⋆ ZyCrypto zycrypto.com 2024-10-06 12:13:56
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