Former hedge fund manager and host of Mad Money Jim Cramer claims that Dogecoin is an unregistered security.
Popular stock aggregator and co-founder of TheStreet.com, Jim Cramer, issued a stern warning about Dogecoin in his latest tweet, claiming that the biggest meme cryptocurrency is an unregistered security.
“Please be careful with Dogecoin… It is a security. It will be edited. We will find out how many of these there are and how many of them are created every day for the exchanges to monetize.”
please be careful with Dogecoin…It is a security. It will be regulated. We will find out how many there are and how many are being created each day to make money for the exchanges.
— Jim Cramer (@jimcramer) January 20, 2022
Cramer seems to suggest that the only purpose of meme cryptocurrencies is to make money for cryptocurrency exchanges.
The CNBC star advised his followers to be careful when dealing with canine cryptocurrency.
In response, Dogecoin co-founder Billy Markus advised Cramer to learn more about blockchain technology and decide whether an asset is a security because Dogecoin is a Proof-of-Work cryptocurrency similar to Bitcoin. He claimed that he did not meet the scope of the Howey Test.
bro, please learn how blockchain works. it’s already well known how many there are and how many are created everyday. it is in the public code on the public blockchain, easily viewable by anyone.
— Shibetoshi Nakamoto (@BillyM2k) January 20, 2022
This is not the first time that the veteran of “Mad Money” has criticized Dogecoin. Cramer was also making the cryptocurrency look petty and mocking, even during the height of the original meme coin craze in late April.
In October, the stockbroker, who had a slight change of mind, stated that it is okay to speculate on cryptocurrencies as long as buyers are aware of the risks associated with them:
The whole thing about investing in cryptocurrencies to the big fool theory You have my consent to speculate on it, as long as you accept the very plausible possibility that it is based (making money by buying overvalued assets and then selling them for profit) during a market bubble.
Cramer also admitted to buying Bitcoin and Ethereum because he was “gambling on crowd psychology”.
Dogecoin became the hot topic of the crypto world in 2021, partly due to its massive rally with the help of Tesla CEO Elon Musk’s incessant tweets. The bubble around Dogecoin burst in early May after Musk’s first appearance on the widely publicized “Saturday Night Live.”
Despite falling 80 percent from its all-time high, the meme cryptocurrency still remains afloat thanks to Musk’s continued support and thriving community.
Besides, there was a big development for Dogecoin at the beginning of this January and some of Tesla’s products became available for purchase with Dogecoin.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.