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SpaceX owner and Tesla CEO Elon Musk (R) gestures as he arrives on the red carpet for the Axel Springer Awards, in Berlin, December 1, 2020.
Britta Pedersen | AFP | Getty Images
Tesla CEO Elon Musk and other celebrities recently posted several tweets supporting dogecoin – and some in the cryptocurrency world are unimpressed.
Nic Carter, a venture capitalist known for his bullish stance on bitcoin, believes Musk’s enthusiasm for the memes-inspired digital token is “baffling” because it is primarily used as a “vehicle for speculation.”
“Unfortunately, a lot of retail bettors are going to lose money on dogecoin in the long run because there really isn’t much in the way of interesting technology,” said Carter, the co-founder of Castle Island Ventures. and data company Coin Metrics, at CNBC. “Street Signs Europe” Wednesday.
“The only thing he can really do is be zombified and stick around and be an empty shell for people’s expectations and for their entertainment.
Carter said dogecoin was what introduced him to crypto in 2013 and that while it was “entertaining and fun” back then, it was now “kind of an empty shell”.
Dogecoin was briefly the 10th virtual currency in market value this week, according to data from CoinMarketCap, as tweets from Musk and music industry icons Snoop Dogg and Gene Simmons pushed its price to an all-time high.
Created in 2013 by software engineers Billy Markus and Jackson Palmer, dogecoin was intended to be used as a faster – but ‘fun’ – alternative to bitcoin. It’s based on the once popular “doge” meme, which features a shiba inu dog alongside multi-colored text in a comedic font with no font.
After taking a brief two-day hiatus from Twitter, Musk returned to tweet several dogecoin, calling it “the people’s crypto”.
Carter wasn’t the only bitcoin enthusiast to criticize Musk for his comments on dogecoin. Galaxy Digital CEO Mike Novogratz said he wished Musk didn’t make such tweets.
“Dogecoin reminds me a lot of GameStop,” Novogratz told CNBC’s “Squawk Box” on Monday, referring to the physical video game retailer that has seen its shares fluctuate wildly after members of a Reddit board crammed into the stock strongly shorted. .
“It’s a meme,” he says. “It was funny for a little while, but now it’s at a market valuation where people are going to lose a lot of money in doge.”
“Bitcoin has a real purpose, Etheruem has a real purpose, a lot of stablecoins have a real purpose,” Novogratz added. “Doge is kind of a meme, kind of a joke.”
The former hedge fund manager compared Musk’s comments on dogecoin to his infamous ‘secured funding’ tweet in 2018, where he claimed he was considering privatizing Tesla at $ 420. Musk agreed to pay a fine and resigned as chairman of Tesla to settle the matter with the U.S. Securities and Exchange Commission.
Tesla on Monday revealed a $ 1.5 billion investment in bitcoin, in information that sent the price of the world’s most valuable cryptocurrency to an all-time high and led to speculation about whether more large companies would do the same.
Carter said that while he found the company’s purchase of Bitcoin “interesting,” he does not advise companies he has invested in to do the same.
“I don’t put the assets of my startups in Bitcoin and frankly I don’t necessarily think that’s the most conservative approach for a CFO,” he said.
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