Chiliz

when

Pepe

<div>
 Investor Mark Cuban shared his views on the risks of memecoins, calling them ”drawn-out rug pulls” with little real-world utility. Meanwhile, Chiliz CEO Alexandre Dreyfus outlined his vision to establish Chiliz as the ”sports blockchain,” with plans to launch a memecoin called Pepper.&nbsp;
 <h2 id="mark-cuban-warns-against-memecoins-calling-them-drawn-out-rug-pulls">Mark Cuban Warns Against Memecoins, Calling Them ”Drawn-Out Rug Pulls”</h2>
 Investor and entrepreneur Mark <a href="https://coinpaper.com/4921/kamala-harris-could-be-the-tech-industry-s-unexpected-ally-mark-cuban" target="_self" rel="noopener noreferrer nofollow">Cuban</a> recently voiced his strong skepticism about memecoins during an appearance on the Rug Radio podcast. Known for his candid views on various sectors, Cuban did not hold back when discussing the cryptocurrency industry, particularly memecoins, which he referred to as extended ”rug pulls” that lack any substantial real-world utility.
 ”It's like playing roulette,” Cuban explained, likening memecoin trading to a game of “musical chairs” where all participants are gambling in hopes of not being left without a seat when the music stops. He argued that despite the enthusiasm and strong communities that often form around these tokens, they are ultimately unsustainable and doomed to collapse.
 According to Cuban, the rapid rise and fall of memecoins is driven by what economists refer to as the Greater Fool Theory. This theory suggests that one can buy an overvalued asset, not based on its intrinsic value, but with the belief that they can sell it to someone else at an even higher price. This cycle continues until there are no more fools left willing to pay inflated prices, leading to a market collapse. Cuban commented that this cycle is particularly evident in the memecoin market, where investors are often aware that they are buying into a speculative bubble but still hope to pass the risk onto someone else before it bursts.
 ”Every single meme pool is a rug pull in the works, right? Because there's no real reason for it to stick around other than the fun of it, and to see when the token goes up in value because more people came in — it's musical chairs,” Cuban emphasized. He added that no one seriously believes these tokens are good long-term investments, even as they participate in the frenzy for short-term gains.
 While admitting he has occasionally considered dabbling in memecoins, <a href="https://coinpaper.com/4867/mark-cuban-predicts-geopolitical-instability-could-boost-bitcoin" target="_self" rel="noopener noreferrer nofollow">Cuban</a> said he has always resisted the temptation, recognizing the inherent volatility and lack of underlying value.
 Despite Cuban's warnings, 2024 has seen a remarkable surge in the creation and trading of memecoins. Over the last 30 days alone, an astonishing 381,401 new memecoins have been created on the Solana network, many of which saw rapid price increases followed by equally swift declines. In most cases, these coins lose 99% or more of their value within days of hitting the market.
 One notable example is the wave of celebrity-endorsed memecoins, which have drawn heavy criticism from both traders and industry professionals. These tokens often follow a familiar pump-and-dump pattern, where their value is inflated through hype and then crashes as soon as early investors cash out, leaving latecomers with massive losses. While the memecoin mania has undoubtedly created short-term profits for some, it has also resulted in financial devastation for many others.
 However, it would be unfair to say that every memecoin follows this downward trajectory. A few projects have managed to buck the trend and establish themselves as long-term contenders in the space, achieving what some have referred to as ”blue-chip” meme status.&nbsp;
 One such example is the Pepe memecoin, which saw a 30% increase in value during the week of Sept. 27, fueled by a resurgence in meme trading activity. Pepe, despite being dismissed as a joke by some, has become a symbol of memecoin culture and continues to maintain a dedicated following.
 Another standout project is Dogwifhat (WIF), one of the only memecoins whose price is measured in whole dollars rather than fractions of a cent. WIF experienced substantial gains in September, with its price briefly surpassing $2. However, as with most memecoins, these gains were fleeting, and the market wiped out those profits by the start of October.
 <h3 id="cuban-s-prediction-for-memecoins-future">Cuban’s Prediction for Memecoins’ Future</h3>
 While some memecoins have demonstrated staying power, Cuban remains unconvinced of their long-term viability. He believes that the memecoin frenzy will eventually come to an end, with most tokens disappearing as quickly as they emerged. Cuban’s stance echoes that of other critics who argue that the memecoin market is a speculative bubble, propped up by hype and excitement rather than any inherent value or utility.
 As the crypto industry matures, Cuban expects to see a shift away from meme-based projects toward more serious applications of blockchain technology that offer tangible benefits. He believes that while speculative trading will always be part of the landscape, the real future of crypto lies in projects that solve real-world problems and create lasting value.
 Cuban's outspoken views are likely to add fuel to the ongoing debate about the role of memecoins in the broader cryptocurrency market. His comments may also influence investors who are on the fence about whether to engage in meme trading or focus on more traditional assets within the crypto space.
 For those who heed Cuban’s advice, memecoins may represent a passing fad, not unlike the dot-com bubble of the early 2000s. However, for others, the allure of quick gains in a high-risk, high-reward environment remains difficult to resist.
 <h2 id="chiliz-ceo-alexandre-dreyfus-aims-to-make-chiliz-the-sports-blockchain-and-launches-pepper-memecoin">Chiliz CEO Alexandre Dreyfus Aims to Make Chiliz ”The Sports Blockchain” and Launches Pepper Memecoin</h2>
 Alexandre Dreyfus, CEO of the Chiliz blockchain, has doubled down on his ambition to establish <a href="https://coinpaper.com/2507/chiliz-s-sport-fi-ecosystem-a-new-dawn-for-fan-centric-d-apps" target="_self" rel="noopener noreferrer nofollow">Chiliz</a> as the definitive blockchain for sports, touting it as the ”sports blockchain” in a recent interview. Known for powering the world's largest fan token platform, Socios.com, Chiliz is making waves not just with fan tokens, but now with the upcoming launch of a memecoin called Pepper, scheduled for Oct. 10. According to Dreyfus, the inspiration behind Pepper is simple: ”Well, Chili Pepper.”&nbsp;
 Chiliz’s native token, CHZ, is already a well-established force in the sports blockchain landscape, facilitating the creation and management of fan tokens on Socios.com. With Pepper, the blockchain is now venturing into the world of memecoins, a domain traditionally dominated by tokens like Dogecoin and Shiba Inu. The memecoin will be airdropped to CHZ holders, though US citizens will be excluded from the distribution, and it can also be farmed. The first exchange to announce Pepper’s listing is Upbit, a major South Korean cryptocurrency platform.
 This new development comes amid fluctuating market conditions for the CHZ token itself. In March 2024, in the lead-up to the UEFA Euro football championships, CHZ saw a significant rally, rising 25% in seven days to hit a two-month high of over $0.15. However, CHZ has retraced to around $0.068. Despite this decline, CHZ remains the world’s leading sports token by market cap.
 “The chain is becoming what we aimed it to become, which is the sports blockchain,” Dreyfus said in the interview. “It’s unique. We are the only ones doing what we do. And we don’t want to do anything else.”
 A key part of Chiliz’s mission is to differentiate fan tokens from the much-hyped non-fungible tokens (NFTs). Dreyfus believes that fan tokens represent a much larger and more active market than NFTs, a sentiment he expressed during the interview. He noted that while NFTs garnered significant attention, especially during the bull market, fan tokens continue to show robust growth and tangible utility.
 ”No offense to the NFT community but what people don't realize [is that] fan tokens are a much bigger market than NFTs,” Dreyfus explained, comparing the current 24-hour volume of fan tokens—$134 million—to NFTs’ much lower $6.8 million, according to data from CoinGecko.
 Dreyfus pointed out the fundamental difference between the two assets: NFTs are non-fungible, meaning each one is unique, while fan tokens are fungible, enabling easier liquidity and trade. He further highlighted that fan tokens allow for more practical applications, such as weekly votes on team-related decisions in sports arenas. In contrast, NFTs, despite their peak popularity in digital art, music, and other fields, have yet to establish a consistently high trading volume outside specific use cases.
 Fan tokens represent more than just speculative digital assets; they offer fans a tangible way to engage with their favorite sports teams. These tokens act as a membership pass to a global sports community, providing holders with perks like game tickets, VIP experiences, and even a say in certain team decisions. For example, fan tokens have enabled supporters to vote on various elements like jersey designs and in-stadium music choices.
 Dreyfus highlighted an incident involving Cristiano Ronaldo during his tenure with Juventus. After Ronaldo scored a hat-trick in a game, the song that played in the stadium was chosen by token holders—a small but significant moment demonstrating how blockchain technology can bridge the gap between digital assets and real-world experiences.
 “This is the perfect example of how something on chain changed something in real life,” Dreyfus said. “Only the token holders could choose the music. And they were not able to do it before. So, soft or not soft, it doesn’t matter.”
 <h3 id="expanding-global-reach-and-regulatory-compliance">Expanding Global Reach and Regulatory Compliance</h3>
 Since its inception, Chiliz has made significant strides in the sports world, signing over 80 sports properties worldwide, ranging from football clubs to cricket teams. Major partnerships include deals with Paris Saint-Germain F.C. and a host of NBA and NFL teams, though no tokens have been launched for the latter yet. In India, Socios has also partnered with several cricket teams from the Indian Premier League (IPL).
 Dreyfus mentioned that Chiliz has established regulatory licenses in several countries, including Italy, Spain, Portugal, and Lithuania. This stringent regulatory framework has allowed Socios.com to become one of the most regulated crypto entities globally, second only to major exchanges.
 “We had to go through the same work as an exchange, except that we don’t do bitcoin and Ethereum, we just do fan tokens,” Dreyfus noted, emphasizing the unique niche his company occupies in the crypto landscape.
 Chiliz’s user base has expanded rapidly, particularly in Turkey and Brazil, where it has attracted one million and 500,000 users, respectively. These countries represent two of Chiliz’s largest markets.
</div>

Mark Cuban Calls Memecoins Extended Rug Pulls

Table of Contents

Coinpaper.com

Other articles published on Oct 4, 2024

Crypto phishing losses drop to $43m in September: Scam Sniffer

CryptoPunk NFT Sets New Record with $56.3 Million Sale in ETH

Ripple’s Cross-Appeal May Be Delayed as SEC Fails to File Form C

Can Vitalik Buterin reduce Ethereum solo staking requirement to 1 ETH from 32 ETH?

XRP Warning Came From 50-Year Analyst Peter Brandt! Announced His Frightening Price Prediction!

Dogwifhat (WIF), Stacks (STX) Falling Behind As Crypto Top 10 Threatened By Pumping Solana Presal...

Join our free newsletter for daily crypto updates!