Forex in this article
• Palmer criticizes crypto scene as “hyper-capitalist self-enrichment”
• Dogecoin founder expects painful “crypto winter”
• Dogecoin: constant downtrend since May 2021
Recently, things have calmed down a bit around the Dogecoin, since the record high in May 2022, the meme currency price has fallen by more than 80 percent. The former Adobe programmer Jackson Palmer, who founded the Dogecoin together with Billy Markus in 2013, should not be too sad regarding this. On the contrary: He longs for the end of the hype regarding Bitcoin & Co.
Crypto scene in crisis
There is a hangover on the crypto market: the entire crypto sector has been in crisis since November 2021. The price of major cryptocurrencies such as Bitcoin or Ether has more than halved and many other cyber currencies such as Dogecoin or Ripple (XRP) are only worth a fraction of their record levels at the time. The debacle surrounding the stablecoin Terra UST and the associated cryptocurrency Terra LUNA recently caused a particularly great deal of horror. Is this the beginning of the end of the crypto boom? Few experts go that far, many investors like Raoul Pal expect the crypto rally to resume soon. But Jackson Palmer wishes nothing less than the demise of the crypto scene.
Palmer: “I wish it was the end of crypto – but it’s not yet”
In an interview with the Australian online magazine “Crikey” at the end of May, Palmer renewed his sharp criticism of the crypto scene. He wishes that the “end of crypto” had come, but at the same time admits that this is not the case yet. The reason for his rejection of cyber currencies: “More and more people do nothing else than earn money by doing nothing, that destroys us all,” quotes “Decrypt” Palmer. In order to oppose the crypto scene, which is still vital despite the recent downturn, Palmer is launching the crypto-critical podcast “Griftonomics” (loosely translated “crook economy”).
Crypto technology is “hypercapitalist self-enrichment”
In his podcast, Palmer wants to draw attention to the abuses within the crypto scene. In his opinion, cryptocurrencies do not add any social value. Quite the contrary: “After years of study, I believe that cryptocurrencies are an inherently right-wing, hyper-capitalist technology designed primarily to augment the wealth of its proponents through a combination of tax avoidance, reduced regulatory oversight, and artificially enforced scarcity.” is Palmer’s devastating verdict. Other celebrities, such as Bill Gates recently, see no use in cryptocurrencies for social coexistence.
Palmer’s prediction: “crypto winter” is imminent
Palmer admits that he had wrongly expected an earlier collapse of cryptocurrencies and the related “ripoffs” such as NFTs (Non-Fungible Tokens) or IGOs (Initial Game Offerings). “I still see tons of money being funneled in by crypto promoters waiting for a new batch of fools to come in. It happens in cycles,” Palmer said. Many crypto skeptics at the time, with whom he was friends, also turned into such “fools” and let themselves be intoxicated by the hype.
But as a result of the constant downward trend of the past few months, there is slowly an awakening, a “crypto winter” is imminent. “I think there’s going to have to be a crash. I think we’re long overdue for some kind of bang and I don’t think it’s going to be a big boom. It’s going to be a lot more painful, and unfortunately it’s probably going to be minorities and those [am unteren Ende des sozioökonomischen Spektrums] hit when it happens.” The richer “crooks,” on the other hand, will come out of such a crash comparatively unscathed, Palmer speculates.
Palmer: “Musk is a crook”
Palmer also describes the currently richest person in the world as a “crook” (grifter), Elon Musk. “He’s a crook, he sells a vision in the hopes that one day he can deliver what he promises, but he doesn’t know that. He’s just very good at pretending he knows,” Palmer warns . “My opinion of him and all billionaires is that I don’t care much for them.” What is particularly interesting regarding Palmer’s criticism of Musk is that the Tesla CEO is considered the most prominent supporter of the Dogecoin. Musk frequently promoted crypto meme Dogecoin on Twitter, but that apparently didn’t change Palmer’s negative opinion of the controversial tech billionaire.
This is how the Dogecoin course develops
In 2013, Palmer and Markus founded the Dogecoin as a tongue-in-cheek satire on the then emerging craze to mint altcoins that have little value other than a symbolism of novelty. However, to their own surprise, the Dogecoins went viral shortly following their creation. According to “CoinMarketCap”, the Dogecoin was already the fifth largest cryptocurrency in the world in 2014. At the end of 2020, Dogecoin achieved an even higher level of awareness when Musk expressed his enthusiasm for the meme project in several tweets. On May 8, the Dogecoin hit an all-time record high at $0.7376, representing a market cap of more than $82 billion. The meme coins were now worth more than the traditional DAX companies Allianz, Mercedes-Benz or Bayer.
As of this day, however, Dogecoin investors have little reason to celebrate. As a result of the generally waning crypto euphoria, the dogecoins also ended their soaring, currently their value at $ 0.08174 and a market capitalization of $ 10.8 billion (as of June 01, 2022) is only a fraction of the record high . After all, Dogecoin is still the tenth largest cryptocurrency in the world. At least according to Palmer, the dogecoin downtrend should continue and record dogecoin levels should stand for all eternity.
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