Billionaire investor Mark Cuban voiced his disapproval of meme coins, referring to them as a “hustle.”
What Happened: In a recent interview, Cuban revealed his lack of enthusiasm for meme coins. Cuban likened meme coins to a game of musical chairs, where some investors reap quick profits while others witness their value evaporate instantly.
"I'm not a fan of meme coins. Obviously, it's a hustle. There's no there there. And so it's just like a game of musical chairs with money. Some people make money and some people won't," Cuban said.
Cuban’s remarks were in reaction to the digital debut of HAWK coin in early December, initiated by 22-year-old Internet sensation Haliey Welch.
The coin’s market capitalization soared to nearly $500 million before plummeting to $28 million within 24 hours. Cuban expressed sympathy for Welch, stating, "It wasn't something she fully understood, but she trusted the people around her. I'm not mad at Haliey at all. I feel bad for her that she got put in this position. She'll be fine and, you know, what's done is done."
Also Read: Mark Cuban’s Wealth Journey: ‘I Want to Live Off This for a Long Time’
Despite his skepticism towards meme coins, Cuban continues to invest in cryptocurrencies. His previous investments include coins like Titan, which crashed in June 2021, and also Polygon (MATIC) and Injective (INJ).
Why It Matters: Cuban’s stance on meme coins is significant given his active involvement in cryptocurrency investments. He believes that for a meme coin to succeed, it needs to build a community, similar to Dogecoin.
“If there’s a meme that develops a community so that it’s almost like a lottery ticket that everyone gets to talk about, then it’s not great, but it’s okay,” he said.
This highlights the importance of community building in the volatile world of meme coins, where investor sentiment can drastically sway market value.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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