SpaceX owner and Tesla CEO Elon Musk (R) gestures as he arrives on the red carpet for the Axel Springer Awards on December 1, 2020.
Britta Pedersen | AFP | Getty Images
Tesla CEO Elon Musk and other celebrities have recently posted several tweets supporting dogecoin – and some in the cryptocurrency world have not been impressed.
Nic Carter, a venture capitalist known for his positive attitude towards bitcoin, believes Musk’s enthusiasm for the meme-inspired digital sign is ‘disturbing’ because it is primarily used as a vehicle for speculation. ‘
“Unfortunately, a lot of retailers are going to lose money on dogecoin in the long run because there really isn’t much in terms of interesting technology,” Carter, co-founder of Castle Island Ventures and data firm Coin Metrics, told CNBC. Street Signs Europe “Wednesday.
“The only thing it can really do is hold and hold zombies and be an empty shell for people’s expectations and for their entertainment.”
Carter said that dogecoin introduced itself to crypto in 2013, and although at the time it was ‘entertaining and fun’, it is now a kind of empty shell. ‘
According to CoinMarketCap data, Dogecoin was briefly the virtual currency no. 10 at market value, as tweets from Musk and music industry icons Snoop Dogg and Gene Simmons raised the price to an all-time high.
Dogecoin, created in 2013 by software engineers Billy Markus and Jackson Palmer, is intended to be used as a faster – but ‘fun’ – alternative to bitcoin. It is based on the once popular “doge” meme, which depicts a shiba inu dog along with multicolored text in comic sans font.
After Musk took a brief two-day break from Twitter, Musk returned to make a number of tweets about the dogecoin, calling it ‘the people’s crypto’. Musk tweeted again on Wednesday about the sign, saying he bought a dogecoin for X Æ A-12, his son along with Canadian musician Grimes, “so he can be a toddler.”
Carter was not the only bitcoin enthusiast to criticize Musk for his comments on dogecoin. Galaxy Digital CEO Mike Novogratz said he wished Musk would not make such tweets.
“Dogecoin reminds me a lot of GameStop,” Novogratz told CNBC’s “Squawk Box” on Monday, referring to the video game retailer that saw shares fluctuate after members of a Reddit board piled into the heavy short circuit. .
“It’s a meme,” he said. “It was a little funny, but now it’s at a market valuation where people are going to lose a lot of money.”