Despite his legendary status within Crypto Twitter, the creator of Dogecoin, Jackson Palmer, doesn’t tend to interact much with the community. He usually shows up, makes a statement, causes a stir, and disappears.
Today, in one of his occasional rants, Palmer decided to talk about the degeneration of the crypto community and why he has not plans to get involved with cryptocurrencies ever again.
The first reason seems to be the ethos behind the technology. Beyond the preachings of financial freedom, Palmer believes that crypto is nothing more than a right-wing tool to give more profits to the wealthy by removing the government’s regulatory powers:
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 scarcity.
— Jackson Palmer (@ummjackson) July 14, 2021
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Palmer explained that decentralization per se is an illusion. Instead, the industry is controlled by a “powerful cartel of wealthy figures,” which may ultimately be destined to repeat the same current power structures but with different leaders.
Similar criticism was made by the former finance minister of Greece, Yanis Varoufakis, who pointed out that cryptocurrencies are destined to benefit very powerful minorities in their current state. This, of course, is far from the democratic ideas many people associate with crypto hodling/using.
“Money is always political. The question is whether it will be democratized or not. I am afraid that many of those who got really excited about Bitcoin because they thought you could democratize money are completely wrong.
“Given its fixed supply and given the fact that there is no democratic mechanism to determine who gets and how many Bitcoins, it creates a kind of feudalism run by the early adopters of Bitcoin.”
But Jackson Palmer is not as diplomatic as Varoufakis. For him, cryptocurrencies today represent the worst face of the capitalist system. Basically a lack of control that could lead to potential social issues
Another important point he stressed is that behind the ideas of sovereignty and responsibility in decision making associated with holding cryptocurrencies hides a sort of vision that tends to praise fraudsters and manipulators:
According to Messari’s second-quarter decentralized finance review, the Ethereum network has settled $2.5 trillion between April and June this year.
It added that this represents a gain of more than 65% quarter on quarter and almost 1,500% year on year. If the current pace continues, the Ethereum network could settle $8 trillion by the end of this year, Messari noted.
Researcher Ryan Watkins stated that the largest driver of this growth continues to be DeFi and stablecoin activity.
For the same quarter in 2020, when the DeFi sector was just starting to bubble up, $159 billion was settled on Ethereum. Going back a year to 2019 when markets were still largely bearish, just $73 billion was settled on the network.
Ethereum whales have also been increasing their holdings with the top ten ETH wallets now controlling more than 20% of the entire supply.
Stablecoin Activity Surging
Stablecoins still made up about half of the total settlements for the quarter despite the decline in ERC-20 based ones on Ethereum.
Messari noted that in Q2 2021, the stablecoin monetary base reached over $107 billion, up 70% since Q1 and more than 800% year-over-year. The three-month period has facilitated $1.7 trillion in transaction volume for stablecoins, up 1,090% year-over-year and 59% since Q1, the report added.
The biggest growing stablecoins in Q2 were USDC, BUSD, and DAI which grew their market share to 23%, 9%, and 5%, respectively. USDT is still the market leader however its dominance is gradually fading as rivals eat into its share.
According to the Tether transparency report, its total supply is currently 62.4 billion – an increase of 197% since the beginning of the year. Of this total, less than half or 30.9 billion USDT are on the ERC-20 token standard. Slightly more are on the Tron network which has 32 billion USDT.
USD Coin has vastly outperformed Tether this year in terms of growth with a supply surge of 577% since the beginning of the year to a record 26.4 billion USDC circulating today.
Ethereum Price Weakens
Despite Ethereum’s bullish transaction figures, the underlying asset continues to weaken. ETH prices are still below the psychological $2K level, trading at $1,970 at the time of press. According to CoinGecko, Ethereum has taken a 15% hit over the past week and is currently down 54.7% from its mid-May all-time high.
On July 7, it was reported that Goldman Sachs still views Ethereum as bullish due to its use-cases and smart contract capabilities.