Dogecoin is the victim of a pump and dump scheme by Elon Musk and co.: Renowned analyst

  • Dogecoin has continued to receive criticism, with the latest being Ric Edelman, a financial advisor who believes that Dogecoin has no legitimate use case and is bad for the entire market.
  • Edelman claimed that Dogecoin borders on a fad and is a pump and dump scheme by “certain wealthy individuals,” making it a fraudulent investment.

Dogecoin is one of the most controversial cryptocurrencies in the market, attracting love and hate in equal measure. The latest to weigh in is Ric Edelman, a world-renowned financial advisor who revealed he is not a big fan of the memecoin. Dogecoin has no legitimate use case and in the long run, it will do more harm than good for the entire industry.

“Doggy-coin, which is the other pronunciation of this, misspelling of the word doggy, D-O-G-E, is the bad boy of crypto,” he told Yahoo Finance in a recent interview.

I am strongly opposed to Dogecoin, Doggy-coin, because it was invented as a joke. It was not serious. It has no legitimate use case. It’s not something that I think is doing the crypto community any good in its effort to generate credibility and legitimacy in the financial marketplace or approval by the SEC.

For Edelman, who has published several best-selling personal finance books, DOGE borders on fad.

And you could even argue fraud, as it’s the victim of a pump and dump scheme by certain very famous wealthy individuals…. Elon Musk.

The lack of regulations in the industry is the reason projects like Dogecoin have prospered, he went on. The SEC has failed in its oversight role, he believes. This is creating the environment for people to do crazy things in crazy chatrooms, “creating a pump and dump environment for get-rich-quick schemes.”

Hoskinson slams Dogecoin

It wasn’t just Edelman who has slammed DOGE recently. Charles Hoskinson, the founder of Cardano also trashed the memecoin in a recent podcast. However, for Hoskinson, this is nothing new. He has bashed the crypto a number of times in the past.

Related: Dogecoin is just a bubble and a mockery of crypto: Cardano founder

So, what’s the point of DOGE? Is it just a meme? Is it actually contending to be useful or is competing as a store of value against Bitcoin?

If Dogecoin is indeed competing to be a store of value against Bitcoin, “why the hell does it have the monetary policy that it does. Also, there’s predatory disctribution of the underlying asset,” Hoskinson went on. Over 90 percent of the DOGE in circulation is held by the top 1 percent of the holders.

Hoskinson believes that about 100 wallets control an overwhelming majority of the DOGE supply, These whales can sell at almost any price and make a profit as they acquired their DOGE at very low prices.

He observed, “There is this existential time bomb that’s in DOGE that once the guys who are vested start selling, they can keep selling and selling and ride it all the way down and make profits regardless of what price they sell at.”

About Author

Steve has been a blockchain writer for four years, and a crypto enthusiast for even longer. He is most excited by the application of blockchain to solve the challenges facing developing nations.

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