Mark Cuban Criticizes Meme Tokens as Potential Scams

Meme tokens lack intrinsic value, with each asset in the segment representing a “prolonged” rug pull, according to billionaire Mark Cuban during a podcast with Rug Radio.

Here is my full interview with @mcuban.

We talked all things Crypto, why he supports Kamala Harris, his problem with Gary Gensler and more!

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— Farokh (@farokh) October 3, 2024

He compared trading such coins to roulette and the game of “Musical Chairs” (sometimes called “Odd One Out”).

According to Cuban, meme coins may have a strong community, but they inevitably lack viability.

“Every meme token is a kind of rug pull in progress, right? Because there are no real reasons to hold it, except for fun and the hope that its value will rise as more people join in,” the billionaire believes.

Cuban argues that the meme market is supported by the greater fool theory. This speculative concept suggests that one can profit by buying an asset and quickly selling it at a profit, as there will always be another willing to execute the same scheme.

“No one is foolish enough to consider these great investments,” the businessman emphasized.

Cuban admitted that he has occasionally considered trading meme coins but ultimately refrained from doing so.

Earlier, Messari described meme tokens as “the most extractive crypto phenomenon” in value destruction since the ICO boom.

A trader and creator of a themed dashboard on Dune, known as Adam, calculated the odds of profitable investment in such coins on Solana — finding it more likely to win at roulette with the riskiest bet on a number.