Jim Cramer is a possible example of a Web3 denizen pointing out that traditional media doesn’t grasp bitcoin.
Cramer, a veteran hedge fund manager and longtime anchor of CNBC’s “Mad Money,” warned today about the dangers of Dogecoin.
He wrote on Twitter that Dogecoin can be dangerous, so be careful. It’s a safety net. There will be regulation. He emphasized that people using Dogecoin should be cautious. It’s a safeguard. Also, this will allow the exchanges to make revenue.
In a nutshell, the people in the industry didn’t agree with anything he had to say.
This may be a reference to Dogecoin’s daily printing of 14.4 million coins. As a result, it becomes increasingly difficult for demand to maintain pace with supply. Furthermore, the Bitcoin network generates roughly 900 new coins every day.
According to Jim, we need the SEC to figure out how much doge there are in circulation.
On January 20, 2022, Neeraj K. Agrawal (@NeerajKA) tweeted:
Preston Byrne, a partner at Anderson Kill, says Cramer is wrong about Dogecoin being security.
According to Byrne’s email to Decrypt, the Howey Test evaluates whether a token is a security or an investment contract. A token is an investment contract, transaction, or program in which investors expect rewards from promoters or other parties.
However, Dogecoin’s decentralized economic model does not satisfy Howey.
As a result, DOGE does not fall under the scrutiny of the Securities and Exchange Commission. Byrne points out that the SEC’s sister body, the Commodity Futures Trading Commission, has regarded it as a commodity.
Although Dogecoin began as a joke, most transactions now use Dogecoin. Markus and Jackson Palmer, the two people behind the project’s inception, have both officially abandoned it. This only garnered global attention until Elon Musk took to Twitter to publicize his concept. The price rose from a fraction of a penny to $0.73 on May 8. This is before dropping by over 80% over the following months.
Is $DOGE a security in the strictest sense of the word? It’s a joke, and the author urges others not to buy it, therefore I don’t think it’s worth the money.
A part-time Dogecoin core developer like Markus or Palmer may have deceived us into believing the project is stable. That is according to MATIC’s Mayor. More importantly, they’ve been manipulating things from behind the scenes all along.