According to Cointelegraph, investor Mark Cuban recently shared his views on the crypto industry during an appearance on the Rug Radio podcast. Cuban expressed his belief that all memecoins are essentially drawn-out rug pulls with no real-world utility. He likened meme trading to a game of 'musical chairs' where participants gamble on the value of tokens increasing as more people join in.
Cuban explained that while memecoins might have strong communities, they lack long-term viability. He described the memecoin market as being driven by the Greater Fool Theory, where investors buy overvalued assets with the hope of selling them at a profit to someone else. Cuban stated, 'Nobody is so stupid as to think this is a great investment,' and admitted that although he has considered trading memecoins, he has always refrained from doing so.
In recent developments, 381,401 new memecoins were created on the Solana network in the last 30 days. Many of these tokens lose 99% or more of their value shortly after being launched for exchange trading. Celebrity-endorsed memecoins have particularly drawn criticism for their role in pump and dump schemes. Despite this, some memecoin projects have managed to establish themselves as blue-chip meme projects.
During the week of September 27, the Pepe memecoin (PEPE) saw a 30% increase in value due to a surge in meme trading. Similarly, Dogwifhat (WIF), one of the few memecoins with its price measured in whole dollars, recorded significant gains in September. However, these gains were wiped out by the first week of October.
