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Mark Cuban Criticizes Meme Coins, Cites HAWK Coin Plunge

Published 23/12/2024, 13:52
© Reuters.

Investing.com -- On Monday, billionaire entrepreneur Mark Cuban expressed his skepticism towards meme coins during a YouTube interview, emphasizing the risks associated with such volatile digital assets. Cuban, known for his investments in technology and ownership of the NBA's Dallas Mavericks, highlighted the inherent instability of these cryptocurrencies.

Cuban's remarks came after the dramatic rise and fall of the HAWK coin, a meme cryptocurrency that soared to a market capitalization close to $500 million before crashing to $28 million within a day. The coin was associated with Haliey Welch, a 22-year-old who gained attention for a viral man-on-the-street interview, earning her the nickname "hawk-tuah."

DEX Screener, a platform that monitors token data, confirmed the sharp fluctuation in HAWK's value. Cuban, reflecting on the event, showed sympathy for Welch, acknowledging that while she may not have fully grasped the situation, she was influenced by her associates.

Cuban stated, "I'm not a fan of meme coins," critiquing the speculative nature of such investments. He compared the trading of meme coins to a "game of musical chairs with money," where the outcome is uncertain, and not everyone profits.

Despite the negative outcome for HAWK, Cuban expressed no ill will towards Welch. He recognized the challenging position she found herself in and conveyed his belief that she would recover from the experience, concluding that "what's done is done."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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