The post Industry Responds To Billionaire Mark Cuban Calling Dogecoin, Shiba Inu, Meme Coins ‘Rug Pulls In The Works’ ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.

Advertisement &nbsp &nbsp Billionaire investor and tech entrepreneur Mark Cuban has sparked ire from the meme coin community with his recent remark, labeling all meme coins as potential exit scams with no real-world utility. His statement conflicts with his public support and love for the OG meme coin, Dogecoin. Mark Cuban: Meme Coins Are Rug Pulls During a recent appearance on the Rug Radio podcast, Shark Tank investor Mark Cuban described meme trading as a game of “musical chairs” whereby all participants gamble. Cuban observed that meme coins can entail strong communities but don’t have staying power. “Every single meme coin is a rug pull in the works, right? Because 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,” the billionaire told his interviewer. Cuban also postulated that the meme coin market is basically buoyed by the Greater Fool Theory — a market thesis that states that investors can buy assets without any fundamental bullish factors and still offload the assets to another investor at a profit. The investor who buys the overvalued asset can then repeat the process by getting another individual who will cough out even more money for the asset based on the same assumption that they can sell the asset at a profit to someone else willing to pay more. “Part of the game in meme coins is to time it to see if you’re going to make or lose money,” Cuban explained. “It’s like flipping a coin; it’s like playing roulette. Nobody is so stupid to think this is a great investment — even if they all go on Reddit or Telegram and say: ‘This is the best meme coin ever. To the moon…

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Filed under: News - @ October 6, 2024 12:18 pm