While the popular memecoin has made its way into people’s crypto portfolios, Jim Cramer has stepped forward to warn these investors about Dogecoin. In an alarming tweet, the CNBC Mad Money host called the asset a “security” and noted that it “will be regulated.”
Cramer stated,
Cramer added and questioned the supply of Dogecoin and alleged that it was “being created each day to make money for the exchanges.”
This opinion on Twitter invited different people to share their thoughts including the co-creator of Dogecoin, Billy Markus.
Markus asked Cramer to “learn how blockchain works” and stated that the supply of Dogecoin was available “in the public code on the public blockchain.”
The co-creator went on to add that “in terms of “security” DOGE was a proof-of-work [PoW] crypto and “you will have to put in work to retrieve the coins from the block.” He continued,
“it doesn’t qualify under the Howey test. it works the same as bitcoin. in fact, it’s 99.5% the same code as bitcoin. please educate yourself.”
Additionally, people in the comment section pointed at the gap of knowledge presented by Cramer but noted that “he knows what he is doing,” given the people he is trying to get through to “don’t understand it.”
While others thought it was just a gimmick to get the community riled up.
“We just fell for it!! He is just looking for publicity Face with rolling eyes…. he knows the doge community will jump right on it!! There is no good or bad publicity!! Well you got it!!”
Meanwhile, Markus pivoted the sentiment and noted that Cramer’s warning could be “the biggest bull signal ever for dogecoin.”
Dogecoin and the SEC
The US Securities and Exchange Commission was looking into the crypto exchanges and other businesses to regulate. However, there has been a long-standing argument of what the Chair Gary Gensler perceived as securities and cryptos. The ongoing ‘Ripple vs SEC’ ordeal brought this issue to light as the regulators alleged for XRP to be security.
As for the status of DOGE, the SEC has not put question mar there yet. The digital asset has managed to sway a lot of people with its presence as a meme coin but now was moving towards increasing utility. This led its market capitalization to hit $20.33 billion and take the eleventh spot on CoinMarketCap.
Dogecoin was currently slipping on the rice scale noting a 6% downtrend in the past 24-hours and being traded at $0.1534.