Creator Dogecoin Jason Palmer believes that the current situation in the market cryptocurrency in many respects similar to what at one time experienced his own offspring. However, this time the scale is more serious and causes much more concern.
In 2013, Jason Palmer decided to create his own cryptocurrency-meme Dogecoin in order to ridicule the hype around bitcoin and show the absurdity of investing in an unstable and unreliable, in his opinion, system. However, investors did not appreciate his “joke” and started buying up Dogecoin, bringing the capitalization of the coin to almost $ 400 million this summer.
“What is now happening with cryptocurrencies, once happened to Dogecoin. Only this time the problem is much more serious, “Palmer said in an interview with the New York Times.
Creator Dogecoin believes that investors have something to worry about. Last week, bitcoin, which rose in early September to almost $ 5,000, against the backdrop of news about the closure of crypto-exchange exchanges in China, went down swiftly, dropping below $ 3000 at some point. Along with bitcoin, the price of many other cryptocurrencies went down, including Dogecoin.
However, the main problem, Palmer believes, is not even volatility, but the abundance of uncontrolled ICOs. According to him, some of them can actually lead to the creation of new interesting products, but most of the projects will simply burst.
According to Palmer, the initial placement of coins in many ways resembles a high-tech around dotcoms in the late 1990s. At that time, investors invested huge sums in new risky enterprises and, subsequently, lost a lot of money when the market “came to feelings”.
Currently, Jason Palmer is filming a series of videos in which he explains to beginners how digital currencies and ICO work. In his opinion, this bubble will burst sooner or later, and those who believe in cryptocurrencies should be ready for this.