Dogecoin co-creator Jackson Palmer has hit out at the crypto industry by calling it a scam and saying that it is controlled by a powerful cartel of wealthy figures.
Dogecoin co-creator Jackson Palmer has hit out at the crypto industry by calling it a scam and saying that it is controlled by a powerful cartel of wealthy figures. Palmer, who is otherwise inactive on social media platforms, took to Twitter on Wednesday and said that cryptocurrency is being used by the wealthy to increase their fortunes by evading tax, diminishing regulatory oversight and artificially enforcing scarcity.
“After years of studying it, I believe that cryptocurrency is 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,” he tweeted out on Wednesday afternoon.
Palmer further hit out at crypto enthusiasts by saying that while there is a common belief that it is an equitable alternative to the Big Banks because of the currency’s decentralized nature, the two share the same problem rich people. Palmer stated that bulk of the crypto community is controlled by a powerful cartel of wealthy figures who are turning decentralized finance into a system that largely benefits those at the top.
Palmer’s claims make a lot of sense as most cryptocurrencies are held by only few wallets. Only one wallet address holds 36 billion Dogecoin tokens or more than 27 per cent of the entire supply. More than 50 per cent of the total Dogecoins in circulation are held by just 20 wallets. The crypto saw a huge rise in the first half of this year when its price went up exponentially but has been on a decline since then.
The same goes for Bitcoin as well. Bitcoin went on a record high earlier this year and was backed by several high-profile investors including Tesla’s Elon Musk. However, Musk announced early May that Tesla will not accept payments in Bitcoin due to its environmental concerns. The crypto bled soon after leading to a market crash within days.
Both Bitcoin and Dogecoin have showed signs of recovery since then but remain highly volatile. They still tend to reach to social media trends and policy changes which make it easy to manipulate the crypto market.
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