Dogecoin Co-Founder Says He’s Done with Cryptos, They Don’t ‘Align With His Belief System’

Digital currency physical metal dogecoin coin.
Adrian Black / Getty Images

Dogecoin co-founder Jackson Palmer had some harsh words about cryptos, calling them “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,” in a Twitter rant yesterday. Palmer added that he will wholeheartedly not “return to cryptocurrency.”

See: Which Cryptocurrency Are You Invested In? Take Our Poll
Find: Dogecoin’s Highs and Lows: Is It Still Worth an Investment?

Palmer slammed everything about the industry, from the lack of regulation to the “cult-like,” get-rich-quick schemes and bought influencers, as well as the “powerful cartel of wealthy figures” who control it.

“It doesn’t align with my politics or belief system, and I don’t have the energy to try and discuss that with those unwilling to engage in a grounded conversation,” he tweeted.

“Despite claims of “decentralization,” the cryptocurrency 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 centralized financial system they supposedly set out to replace,” Palmer tweeted.

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Dogecoin was created as a joke — its name is a reference to a popular internet meme, according to Coinbase.

While it has gained incredible traction in the past few months as well as celebrity endorsements, notably Elon Musk, but also Mark Cuban and Snoop Dog, just like any other crypto, it’s extremely volatile. Unlike Bitcoin, where the supply of which is capped 21 million, it doesn’t have the important supply and demand factor embedded in it. Dogecoin currently has 130 billion tokens in circulation and no hard cap on the number of coins that can be produced.

This morning, Doge was at $0.18. down 3.7% in the past 24 hours, according to CoinMarketCap.

Palmer went on to tweet that 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.”

“Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost purpose-built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable,” he added.

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“Cryptocurrency is like taking the worst parts of today’s capitalist system (eg. corruption, fraud, inequality) and using software to technically limit the use of interventions (eg. audits, regulation, taxation) which serve as protections or safety nets for the average person,” he posted.”Lose your savings account password? Your fault. Fall victim to a scam? Your fault. Billionaires manipulating markets? They’re geniuses.”

“This is the type of dangerous “free for all” capitalism cryptocurrency was unfortunately architected to facilitate since its inception. But these days even the most modest critique of cryptocurrency will draw smears from the powerful figures in control of the industry and the ire of retail investors who they’ve sold the false promise of one day being a fellow billionaire. Good-faith debate is near impossible,” he continued.

See: Mark Cuban Talks Dogecoin: ‘You’ve Got To Know Why You’re Investing’
Find: Robinhood Makes IPO Prospectus Public, Revealing First-Time Profitability Due Largely to Dogecoin

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Palmer ended by saying he applauded “those with the energy to continue asking the hard questions and applying the lens of rigorous skepticism all technology should be subject to.”

New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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