TL;DR Breakdown
- Jim Cramer says Dogecoin is a security.
- Warns investors SEC is coming for the meme coin.
The host of Mad Money, a CNBC show, Jim Cramer, has issued a warning to Dogecoin holders. He said the meme coin is a security that will soon be regulated by the security and exchange commission (SEC).
“Please be careful with dogecoin,” he tweeted, adding that the meme cryptocurrency “is a security” and “will be regulated.” In addition, he wrote: “We will find out how many there are and how many are being created each day to make money for the exchanges.”
Jim Cramer’s comment about the popular meme coin, which also aired on CNBC Thursday, has drawn a lot of attention on Twitter.
Many people disagreed with Cramer. Some expressed to the Mad Money host that Dogecoin is not a security, questioning how he concluded it is. Some people slammed Cramer for his lack of knowledge of blockchains and DOGE’s supply.
Dogecoin creator responds to Jim Cramer
In reaction to Cramer’s statement, Dogecoin co-creator Billy Markus Markus asked Cramer to learn about Dogecoin and how the blockchain works. Dogecoin does not qualify the Howey Test, the U.S. Supreme Court case, to determine whether a transaction qualifies as an investment contract. The proof-of-work memecoin is a cryptocurrency similar to Bitcoin.
Markus explains that DogecoinDogecoin is not a security; it is a cryptocurrency like Bitcoin. Historically, Cramer has criticized DogecoinDogecoin, even at its peak in April 2021.
He said, “In terms of ‘security,’ it is a proof-of-work cryptocurrency, so you have to put in work to retrieve the coins from the block. It doesn’t qualify under the Howey Test. It works the same as bitcoin. In fact, it’s 99.5% the same code as bitcoin. Please educate yourself,” Markus stressed. He further tweeted that Cramer’s warning is “The biggest bull signal ever for dogecoin.”
Even though Cramer and many other individuals have opined against the memecoin, it has evolved as one of the most popular assets in the crypto space.
Its most notable supporters include Tesla’s CEO – Elon Musk – and the owner of The Dallas Mavericks – Mark Cuban. The former has repeatedly praised DOGE’s merits on his Twitter account, which has affected its USD value.
Source: https://www.cryptopolitan.com/jim-cramer-warns-sec-is-coming-for-doge/