Dogecoin’s founder ripped into the meme-based cryptocurrency in an extraordinary Twitter triade on Thursday. Developer Jackson Palmer, who helped create the digital token back in 2013, savaged the cryptocurrency market in a damning thread.
He referred to crypto as “an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity”.
“The cryptocurrency industry leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like ‘get rich quick’ funnel designed to extract new money from the financially desperate and naive,” Palmer added.
Dogecoin has been one of the biggest crypto stories of the last year, starting out as a joke based on the popular Doge internet meme. The coin quickly gained traction and soared in value, attracting some prominent backers in the media, none more so than Tesla billionaire Elon Musk.
Palmer went on to say that the crypto industry is “controlled by a powerful cartel of wealthy figures who, with time, have evolved to incorporate many of the same institutions tied to the existing centralised financial system they supposedly set out to replace.”
He added that cryptocurrency is “almost purpose built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable.” The Dogecoin co-founder also highlighted that victims are often blamed for falling for scams, yet that the “billionaires manipulating markets” are regarded as “geniuses”.
Such accusations have been levelled at Musk, whose tweets have been notoriously tied to the value of DOGE. The value of the cryptocurrency crashed when he referred to it as a “hustle” during an SNL appearance in June, despite previously openly advocating for the token. Palmer’s labelling of cryptocurrency as a “scam” comes amidst a tightening in the UK and other areas on the crypto market.
The UK’s Financial Conduct Authority banned Binance, one of the world’s leading crypto exchanges, from offering its services in the country back in June. The Polish and Italian regulators have also warned of the exchange’s services since. The Bank of England has warned of further incoming regulation, while a crackdown in China recently saw Bitcoin crash in value as crypto prices in general have continuously fallen over recent months.