Mark Cuban Calls Memecoins “Drawn-Out Rug Pulls” on Podcast

Investor Mark Cuban delivered harsh words against memecoins when he recently appeared on the Rug Radio podcast.

Cuban described all memecoins as “drawn-out rug pulls” on the platform, saying these have no real-world utility. He even compared memecoin trading to playing roulette. He explained that while these often attract strong communities, they ultimately lack long-term value.

“It’s like a game of musical chairs,” Cuban said, highlighting that memecoin investors are essentially gambling, hoping not to be left without a buyer when the music stops. He likened the market to the Greater Fool Theory — a hypothesis suggesting that investors can profit from selling overvalued assets to someone willing to pay more, regardless of the asset’s intrinsic worth. This cycle continues until the bubble bursts and someone is left holding an asset that no one else wants to buy.

“Nobody is so stupid as to think this is a great investment,” Cuban remarked about memecoins. Although he admitted to being tempted to trade them at times, he has always resisted. He always viewed them as highly speculative and unsustainable in the long term.

Cuban Criticizes SEC’s Regulatory Approach While Sharing Crypto Insights

Earlier, the investor didn’t hold back in expressing his views on Kamala Harris’ presidential campaign. According to him, Harris’ strategy opposes “regulation through litigation” — a stance that contrasts with the current approach of the U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler.

Cuban’s remarks came after Gensler’s testimony before the House Financial Services Committee, where where the latter faced questions about his regulatory approach toward cryptocurrencies. Cuban shared clips from the hearing on X, including a key moment where Representative Ritchie Torres (D-N.Y.) asked Gensler to differentiate between buying a Yankees game ticket and purchasing an NFT for an animated web series. Gensler struggled to provide a clear answer.

“Polygon and Injective,” the billionaire responded on X in an “ask me anything” thread when asked about his favorite cryptocurrencies aside from Bitcoin and Ethereum. Cuban, who previously cautioned that a major meltdown in Bitcoin and the broader crypto market could be on the horizon, said that he is an investor in both projects. He urged followers to “do your own research” before making investment decisions.

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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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