The host of CNBC’s Mad Money show, Jim Cramer, has warned investors about Dogecoin investments. Cramer believes that DOGE is an unregistered security and is not protected by the Securities Exchange Act of 1934.
Jim Cramer Talks About Dogecoin And How To Invest In It
On January 20, 2020, CNBC’s Jim Cramer called Dogecoin a security. He suggested that the original meme coin will be regulated and the community will be able to confirm how many tokens are in circulation. While Bitcoin bulls have praised the crypto’s finite supply of 21 million, they have long criticized inflationary Dogecoin owing to its unlimited supply.
Cramer said he’s no longer recommending the cryptocurrency. He thinks the doggy-themed cryptocurrency is used to make money for centralized exchanges. He cautioned his followers when it comes to trading or investing in Dogecoin.
When CNBC host Jim Cramer asked whether Dogecoin creator Billy Markus agreed with his comments that it was the second most important cryptocurrency, he responded that he would rather that Cramer learn more about blockchain and cryptocurrencies.
Moreover, he added Dogecoin doesn’t qualify under the famous “Howey test” since it uses a proof-of-work consensus mechanism similar to Bitcoin. The SEC has been applying this annoyingly complicated test to determine whether certain assets qualify as investment contracts and are indeed securities.
After a meteoric rise last year, Dogecoin is clearly not the first cryptocurrency to be dismissed by the infamous Jim Cramer. But if this is not the first time he’s rejected the idea of investing in Dogecoin, it will certainly be the last. “I am a seller of Dogecoin,” he stated at the time.
When Dogecoin steals the spotlight, the internet gets mad. Elon Musk once called himself the Dogefather. He’s long endorsed Dogecoin and tweeted about it on several occasions, causing its price to skyrocket.
Elon Musk reaffirmed his loyalty to Dogecoin last month, during a Twitter exchange regarding Web 3 with former Twitter CEO Jack Dorsey. He revealed he is “pro Doge”.
After dropping Bitcoin in May last year, Tesla now accepts Dogecoin for merchandise payments.
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