Mark Cuban: Meme Coins Are Rug Pulls, Except DOGE

Mark Cuban, the famous investor in Shark Tank, is known as a famous Dogecoin advocate, but recently, he sounded decidedly unenthusiastic

Mark Cuban, the billionaire entrepreneur and star of the hit TV show Shark Tank, has sounded off on meme coins, calling them “a rug pull in the works” and comparing them to a game of musical chairs.

In an interview with TheStreet, Cuban said that meme coins are “very volatile” and thrive on sensational hype from traders speculating on their prices. He added that anything from internet memes to celebrities and trending events can create or influence some meme coins to gain overnight fame.

“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,” Cuban said. “Meme coins are all a game of musical chairs.”

The entrepreneur has been one of the most vocal and long-time advocates of Dogecoin, even offering it as a means of payment for merchandise transacted through the NBA's Dallas Mavericks. He previously claimed that DOGE has more possible use cases compared to Cardano, following Hoskinson's layer-1 blockchain reaching an on-chain volume milestone.

Recently, the billionaire showed his love for DOGE further, highlighting the cryptocurrency's relative value besides leading cryptocurrencies. While Cuban acknowledged that Bitcoin is a store of value and a hedge against fiat currency, and Ethereum has a smart contract capability that enables dApps, he also sees Dogecoin as having a relatively meritorious place in the crypto ecosystem.

"And then there's Dogecoin, which is more for fun and community. It just really depends on where you're at. And I'm a proponent of all of them. I see the fun in it, I see the utility in it, and I see the store value of it. So it really depends on where you want to go," Cuban said.

Mark Cuban further added that all meme coins could be rug pulls, an assertion that likely refers to lower-market cap tokens, some of which were launched on platforms such as Pump.fun and Moonshot. Many of them lack the full-scale support from whales and companies that the more prominent cryptocurrencies boast. Because of that, they tend to be super volatile in price action. Only a few could sustain a big run, with even fewer remaining long afterward.

Meme Coins Are a Game, Not an Investment

By contrast, Dogecoin boasts high-profile proponents, including Elon Musk, the owner of Twitter and Tesla, and Cuban. Still, unlike Musk, Mark Cuban is still backing the Democratic Party presidential nominee Kamala Harris.

Recently, the entrepreneur said that if Harris wins the US Presidential Election, he'd like to replace Gary Gensler as head of the SEC. He has been one of the most vocal advocates for the crypto industry against what he sees as an aggressively positioned SEC when it comes to cryptocurrency regulation.

Sure, a lot of smaller tokens can get a smattering of flash-in-the-pan attention from social media influencers. However, they usually don't have longer-term interest or backing to make them survive in competitive crypto.

Mark Cuban also explained that part of the game in meme coins is to time it to see if one will make or lose money. He compared it to flipping a coin or playing roulette. The billionaire stated that nobody is so naive to think this is a great investment—even if they all go on Reddit or Telegram and claim that it's the best meme coin ever, urging others to “aim for the moon.”

The entrepreneur likened trading in meme coins to gambling. He said meme coins are especially appealing in states where gambling has been outlawed. On the meme coin site Pump.fun, the odds against a token reaching a $69,000 market cap were roughly 1.5 percent. That is low compared with the house advantage on most casino games.

Still, traders could profit on coins that never reached that relatively low threshold. Mark Cuban also admitted to looking at meme coins himself. All the time, he said, he was seriously considering buying some. The billionaire likened it to flipping a coin and being somewhat overwhelmed that it would land on the right end. It is a game, he said.

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