Mark Cuban, billionaire and investor, recently voiced sharp criticism of memecoins during an appearance on the Rug Radio podcast. He referred to them as “extended carpet pulls,” highlighting the lack of real value behind these assets. Cuban compared the memecoin market to a game of “musical chairs,” where token prices rise as more participants join in, but ultimately leave many investors with significant losses.

High Interest, but Little Viability

While some memecoins may have strong communities, Cuban emphasizes their lack of long-term viability. He explained that the market for such assets is based on the “Greater Fool” theory, where people buy overvalued assets in hopes of selling them at a profit to someone else. Eventually, someone is left holding assets that are essentially worthless. Cuban remarked, “No one is that stupid to think this is a great investment,” and added that he has always refrained from trading such tokens.

Sharp Growth of New Memecoins

Over the past 30 days, more than 381,000 new memecoins have been created on the Solana blockchain, signaling the popularity of these tokens among crypto enthusiasts. However, most of them quickly lose 99% or more of their value after being listed on exchanges. Memecoins backed by celebrities have repeatedly faced criticism for their involvement in pump-and-dump schemes.

Examples of Recent Growth and Decline

Despite the overall volatility of the memecoin market, some projects experience sudden spikes in interest. For example, at the end of September, the memecoin Pepe (PEPE) saw a 30% rise, fueled by the hype surrounding memecoin trading. Similarly, Dogwifhat (WIF) experienced significant growth in September, becoming one of the few memecoins with a value expressed in dollars. However, by early October, most of these tokens had lost a substantial portion of their value.

Memecoin Outlook and Cuban’s Opinion

Cuban believes that, despite their popularity, these tokens are not true investments and carry high risks for inexperienced investors. He warns against participating in such projects, noting that these assets can easily become worthless at any moment.