The co-creator of cryptocurrency Dogecoin (DOGE-USD) has launched a scathing attack on the sector, labelling cryptos an exploitative scam that benefits the wealthy.
Jackson Palmer, a developer who helped to create Dogecoin in 2013, took to Twitter to label cryptocurrencies "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".
"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," Palmer wrote as part of a series of Tweets.
"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."
The tweets came from an account bearing Palmer's name and were widely reported to be from the Dogecoin co-creator.
Palmer said he no longer planned to engage in the space and did not have the "energy" to critique the sector beyond his series of tweets.
The comments come months after the cryptocurrency he helped to create surged in value for little apparent reason. Palmer and Billy Markus originally created Dogecoin as a joke based on a meme. It traded for less than a cent for years before exploding in value at the start of 2021 and reaching an all-time high of $0.73 in April. The price has since crashed down to $0.19 but is still well above where it has been for most of its life.
Dogecoin's price rise coincided with a surge in interest and investment into the broader cryptocurrency space but with little of substance underlying its rally. Dogecoin's price moves were often driven by celebrity tweets from the likes of Tesla (TSLA) boss Elon Musk and rapper Snoop Dogg.
Palmer's fellow co-creator Markus told Bloomberg in February that he found Dogecoin's price rise "silly".
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