Jim Cramer, host of Mad Money on CNBC, has alarm about investing in Dogecoin (DOGE) yesterday (January 20).
Cramer is a former hedge fund manager and co-founder of Thestreet.com, a financial news and knowledge website.
“Be careful with Dogecoin,” Cramer tweeted, adding that it “is a security” and “is regulated.”
“We need to see how much DOGE is generated in total and how many coins are generated per day to generate revenue for the exchange.”
Cramer’s comment on Dogecoin, which also aired on CNBC Thursday, drew a lot of attention on Twitter.
Many people disagree with Cramer. Some have expressed that Dogecoin is not a security and wonder on what basis he draws such a conclusion. Some have criticized Cramer for his lack of blockchain knowledge and DOGE’s offering.
Dogecoin co-founder Billy Markus has answer Cramer:
“Please learn how blockchain works. Everyone already knows the total DOGE that is generated and how many coins are generated daily. It is in public code on the public blockchain, easily viewable by anyone.”
“In terms of ‘security’, it’s a Proof-of-Work (POW) cryptocurrency, so generating coins from blocks is tedious. It does not count as security under Howey Test case law. It works just like bitcoin. In fact, it is 99.5% similar in code to Bitcoin. Educate yourself,” Markus pointed out, tweeting that Cramer’s warning was “the biggest bullish signal ever for DOGE.”
SEC Chairman Gary Gensler is currently focused on regulating cryptocurrency exchanges. He believes that many cryptocurrencies listed on exchanges are securities and require registration. However, Gensler has a limited discussion of a specific cryptocurrency.
The 11th largest cryptocurrency by market cap, DOGE is currently trading at $0.149 and has a capitalization of around $20.1 billion.
DOGE currently has many supporters, including Tesla’s Elon Musk and billionaire investor Mark Cuban. Both consider Dogecoin to be the best cryptocurrency for transactions.
Recently Tesla started accepting DOGE for some items. Musk, known as Dogefather in the crypto community, also owns a large amount of DOGE.
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