- Dogecoin co-founder Palmer says crypto is the worst part of today’s capitalist system.
- He added that cryptocurrencies are “designed to extract money from the financially desperate and naïve.”
Jackson Palmer, the co-creator of the meme-based cryptocurrency Dogecoin, has launched a Twitter onslaught on the cryptocurrency industry. Having left in 2015, his shocking tweets indicate no intentions of returning to the crypto he built.
Palmer has likened cryptocurrencies to “the worst parts of today’s capitalist system (e.g. corruption, fraud, inequality)”. He further said crypto limits protective interventions such as audits and regulation.
Palmer explained his astonishing change of loyalties in a tweet reading:
After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight, and artificially enforced security.
“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,” Palmer’s tweet read.
I am often asked if I will “return to cryptocurrency” or begin regularly sharing my thoughts on the topic again. My answer is a wholehearted “no”, but to avoid repeating myself I figure it might be worthwhile briefly explaining why here…
— Jackson Palmer (@ummjackson) July 14, 2021
The Rise of Dogecoin
Notably, Dogecoin was named after a popular internet dog meme. Palmer and his partner Billy Markus, also a software engineer, developed the coin to make fun of Bitcoin knockoffs. The coin has since gained a following from wealth seekers and those seeking a more ‘amusing’ alternative to coins such as Bitcoin and Ethereum.
Moreover, Tesla CEO Elon Musk and his fellow billionaire Mark Cuban are known DOGE proponents, further fueling its popularity. DOGE is now the eighth-largest with a $26 billion market cap, having gained 6,000 percent value in the past year.
That said, Markus sold all of his Dogecoin holdings following a personal financial crisis in 2014. More recently though, the engineer bought back the coin, probably motivated by its recent success.
Capitalism in Crypto Industry: Palmer
Palmer, nonetheless, maintains that the cryptocurrency industry is leveraging on “a network of shady business connections.” The industry has paid influencers and “pay-for-play media outlets” which advance the “cult-like” idea of overnight wealth, he added.
The crypto space, according to Palmer, is “designed to extract money from the financially desperate and naïve.” Its architecture lies in profiteering the controllers at the expense of the poor and vulnerable.
Palmer concludes his string of tweets saying he does not wish to argue since crypto critiques “draw smears” from the industry’s powerful controllers. More so, retail investors have become crypto fanatics as the ‘billionaire future’ sets deep roots into their minds.
Crypto industry skepticism began in 2015 for Palmer, when he backed out of Dogecoin claiming it to be “toxic”. Later in 2018, he said Bitcoin was a “little cult-like” and added little value to society. Nevertheless, he admitted to holding some Bitcoin, Ethereum, and Tezos among other tokens.
One commenter, Nic Carter from Castle Island Ventures blockchain-focused firm, said:
Hard to conceive of anything more despicable than creating a meritless clone of bitcoin with no use case other than ripping off clueless investors then using that notoriety to attack & undermine the technology that made you relevant.
Palmer, however, reiterates that cryptocurrencies do not now align with his “politics or belief system.”