Cryptocurrencies are going through a turbulent time. On the one hand, countries are banning them outright, while there are countries using innovative ways to fuel its rise and acceptance. In the midst of the rising and the falling value of cryptocurrencies, Dogecoin co-founder, Jackson Palmer, has broken his silence and tweeted that they are all a scam.
Palmer turned his Twitter account private in 2019 and gone on a self-imposed exile on social media. His creation, the Dogecoin, was a satirical piece about the cryptocurrencies way back in 2013; and even Palmer must have been surprised to see the digital currency rally and come close to the value of a dollar earlier this year. It's not bad for an eight-year-old currency system that started off as a joke. But Palmer minced no words while pointing out the flaws of the cryptocurrencies.
Calling it a right-wing technology, Palmer tweeted that cryptocurrency served the same goals of tax avoidance, reducing regulatory oversight and creating an artificial scarcity, to increase the wealth of its proponents. He declared similarities between cryptocurrencies and existing financial systems, suggesting that nothing would change, even if the world went fully crypto. He did believe that new technology could change the world but not needed to be "decoupled from inherent politics and societal consequences."
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.— Jackson Palmer (@ummjackson) July 14, 2021
Calling it a hyper-capitalistic technology, Palmer wrote that cryptocurrency was built to allow maximize profiteering, and detailed how the ecosystem functioned.
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.— Jackson Palmer (@ummjackson) July 14, 2021
He also said that the cryptocurrency technology was taking away protections such as audits, regulations, and taxation that shield the vulnerable. A string of cryptocurrency scams has been reported in various parts of the world while Americans have lost over $80 million in crypto scams according to the Federal Trade Commission. Retail investors also have been left dry so far.
While one of Dogecoin's co-founders, Billy Markus, bought some Dogecoin, Palmer said that cryptocurrencies do not align with his belief system and he doesn't wish to engage with those who are not willing to have a grounded conversation about its fallout. He did applaud people who were holding on to their skepticism and asking tough questions about the technology.