The investor, Mark Eusco, stated that the entire value of the dog money depended on Mask never sold. In explaining SpaceX ' s recent IPO, he compared the two to the belief that the dog money depended almost entirely on the beliefs of its most famous supporters.
Compare SpaceX with dog coins
Eusko noted that Mask and Mark Kuban owned most of the dog coin supply, while the wider retail owners believed that the token was of real value. He said, "If Mask sells a puppy, it'll be zero." In his view, the price of the dog coin existed only because its largest holder chose not to sell it.
Yousco compared SpaceX's IPO structure to dog coins, calling it a similar “superstitious asset”. In his view, SpaceX was not that extreme because it operated a real business and had a fully functional satellite sector. However, Eusco believes that the dynamics behind it look similar: small flows, centralized holdings and a wave of enthusiasm support prices.
He thinks SpaceX is overrated.
He used Tesla's trajectory as a preview of what could happen to SpaceX. He stated that Tesla ' s share price had risen about tenfold after similar job cycles and empty head squeezes, but had remained stable for four and a half years, while income had fallen and free cash flows had turned negative.
Yousco's math problem.
He claimed that the $2 trillion valuation that had started with SpaceX was a mathematical impossibility. According to Yusco, today ' s purchase of SpaceX is completely different from the early purchase of apples or Microsoft shares, because those companies were initially small businesses and gradually grew into critical infrastructure. By contrast, SpaceX ' s valuation has reached a scale that requires it to be half of United States GDP for early investors to see some expected returns.
He indicated that SpaceX ' s artificial intelligence ambitions, including data centres in space, were not technically feasible in the short term and that the company ' s cash flow was expected to remain negative in the coming years. Once the lock-down expired, the insiders started selling, and Yusco indicated that he expected prices to drop sharply.