By Nathan Ferguson
Jim Cramer – the person hosting Mad Money (a show conducted by CNBC) – has publicly cautioned against investing in Dogecoin. He asserted that DOGE is moving towards its end as, in his consideration, it is a security that is unregistered.
Jim Cramer blows the whistle against Dogecoin
In a tweet of 20th January, Cramer asserted that Dogecoin comes under the category of securities. The TV host recommended that the primary meme token will undergo the process of regulation and it will be confirmed by the community how many crypto coins are being circulated. Though the prominent Bitcoin investors have expressed concerns regarding the finite supply of crypto at 21M, they have condemned the inflationary Dogecoin due to the unlimited supply thereof.
Cramer additionally emphasized that dog-themed crypto is utilized for making profits for the centralized exchanges of cryptocurrency. He told his followers to be careful in the case of investing or trading Dogecoin. While replying to Cramer, Billy Markus (the co-creator of Dogecoin) advised him to get some knowledge regarding the operation of blockchains. Markus revealed that over the public blockchain anyone can view the amount of Dogecoins that have been created or are being created daily.
In addition to this, he mentioned that Dogecoin does not fulfill the criteria of the prominent Howey test as it utilizes a proof-of-work mechanism of consensus which is alike Bitcoin. The Securities and Exchange Commission (SEC) has continuously been implementing this test for finding out whether the particular assets come under the category of investment contracts as well as are categorized as securities.
Elon Musk as a pro-Doge
This does not count to be the earliest instance where Dogecoin is dismissed by Cramer. Even though DOGE had a rapid upsurge in the earlier period of this year, Cramer did not approve of the concept of investing the money thereof into the meme crypto. He would not do this even for a single time. In 2021, considerable fame was enjoyed by Dogecoin because of Elon Musk.
The CEO of Tesla – also known as the Dogefather – has promoted Dogecoin for a long time by posting several tweets to pump up the meme-based crypto token’s value on many events. In the recent month, during an exchange of tweets with Jack Dorsey (the former CEO of Twitter) over the subject of Web 3, Musk re-insisted on being loyal to Dogecoin and labeled himself as pro-Doge.