Billionaire investor and Shark Tank star, Mark Cuban recently stated all that meme coins are carpet pullers in a podcast. However, this statement contradicts his known support and love for Dogecoin (DOGE)the first ever meme coin and one of the most popular cryptocurrencies on the market.
Mark Cuban: All meme coins are ‘carpets’
In one podcast with Farokh Radio on October 3, Cuban stated that all meme-based cryptocurrencies are carpet pullsimplying that these coins are a scam designed to deceive investors. When asked about his view on meme coins in the market, Cuban explained that the appeal of these digital assets largely comes from their fun meme theme and strong community support.
Despite his public support for Dogecoin, Cuban compared trading meme coins to playing a game of roulette or musical chairs. He emphasized that the appeal behind these coins lies in their unpredictability and volatility. He also pointed out that the value of most meme coins is high strongly influenced by market trends and social sentiments, which often increase as more people participate decreases as sentiment becomes negative.
The Shark Tank star also noted that there was no real reason for meme coins to remain sustainable in the crypto market. This statement can be attributed to the general lack of real utility and intrinsic value of meme coins, especially when compared to household crypto names like Bitcoin, Ethereum, and Solana.
Using the recently launched meme coin, MooDeng as an example, Cuban suggested that meme-based cryptocurrencies were a fun but risky investment that potentially generate profit for happy investors. He further noted that no one was under the illusion that meme coins are good investments, but their appeal lies in their playful, meme-driven nature and tends to increase dramatically.
While sharing his vision meme-based cryptocurrencies Being potential carpet pullers, Cuban admitted that he has often been tempted to invest in these volatile coins. He revealed that although he had considered trading several meme coins, he ultimately decided against it due to their unpredictable and unstable nature.
Is Dogecoin a draw?
Despite the fact that all the meme coins have been carpet pullers, Cuban has regularly shown strong support for Dogecoin, the leading dog-themed meme coin. Earlier this year, the famous billionaire investor did revealed that the Dallas Mavericks, an American professional basketball team he owns, still accepts Dogecoin as a payment method.
Furthermore, Cuban is known to speak positively about Dogecoin, even claiming in his recent podcast with Farokh Radio that he sees the utility and store of value that characterizes Dogecoin and other cryptocurrencies such as Bitcoin and Ethereum.
Cuban skepticism about its sustainability and legitimacy of meme coins is reflected in a recent report from BDC Consulting highlighting the increasing number of dead meme coins. The report reveals that there were over 2,000 meme coin projects as of March 2024, but 89% of these coins had a market cap of zero to $1,000, while only 5% exceeded a market cap of $10 million.
The report also notes that 40% of meme coin projects are often influenced by pump and dump schemes, while 30% appear to be carpet pulling. However, based on Cuban’s recent statements on the podcast, 100% of meme coins are carpet pullersmeaning even his beloved Dogecoin, the number one meme coin, can fall into this category.
Featured image created with Dall.E, chart from Tradingview.com