SpaceX owner and Tesla CEO Elon Musk (R) moves on as he arrives on the red carpet for the Axel Springer Awards ceremony, in Berlin, on December 1, 2020.
Britta Pedersen | AFP | Getty Images
Tesla CEO Elon Musk and other celebrities have posted several tweets in support of dogecoin recently – and some in the cryptocurrency world aren’t as happy.
Nic Carter, a venture capitalist known for his bullish stance on bitcoin, thinks Musk’s commitment to the digital token inspired by a meme is “uncertain” because it is mostly used as a “vehicle for profiteering.”
“Unfortunately many retailers are going to lose money on dogecoin in the long run as there isn’t much out there in terms of exciting technology,” said Carter, co-founder of Castle Island Ventures and the company. Coin Metrics data, to CNBC “Europe ‘s street signs” Wednesday.
“The only thing it can do is be zombified and keep around and be an empty shell for people’s expectations and for their entertainment.”
Carter said dogecoin was what introduced him to crypto back in 2013 and, while it was “entertainment and fun” at the time, it is now “a kind of empty husk.”
Dogecoin was soon a No. 10 volatile currency by market value this week, according to CoinMarketCap data, as tweets from Musk and business images Snoop Dogg and Gene Simmons raised its price to high time rate.
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 is based on the once popular “doge” meme, featuring a shiba inu dog along with multi-colored text in a comic sans font.
After taking a two-day break from Twitter, Musk returned to make several tweets about the dogecoin, claiming it was “people’s crypto.” Musk tweeted about the token again Wednesday, saying he bought some dogecoin for X Æ A-12, his son with Canadian musician Grimes, “so he can be a baby hodler.”
Musk was apparently referring to the bitcoin slang term “HODL,” which encourages people to hold on to their crypto rather than sell it.
Carter wasn’t the only bitcoin enthusiast who has criticized Musk for his views on dogecoin. Mike Novogratz, CEO of Galaxy Digital, said he wanted Musk not to make such tweets.
“Dogecoin reminds me a lot of GameStop,” Novogratz told CNBC’s “Squawk Box” on Monday, referring to the brick-and-mortar video game vendor that saw its shares fluctuate wildly. after Reddit board members plunged into the scarce stock. .
“It’s a meme,” he said. “It was funny for a while but now it’s at a market valuation where people are going to lose a lot of money in a doge.”