The G20 Finance Ministers and Central Bank Governors(FMCBG) have agreed on a roadmap to tackle the challenges and explore the opportunities posed by cryptocurrency assets like bitcoin, ethereum, and others. The roadmap was proposed in a synthesis paper jointly prepared by the International Monetary Fund (IMF) and the Financial Stability Board (FSB).
G20 Roadmap on Crypto Assets
The synthesis paper outlines a comprehensive plan aimed at fostering global policy and regulation for crypto assets. It emphasizes the need to address the specific implications of these assets on emerging markets and developing economies (EMDEs). The paper focuses on five key areas, including policy frameworks, outreach beyond G20 jurisdictions, global coordination and cooperation, information sharing, and addressing data gaps.
Read Also: G20 Presidency Puts Global Crypto Regulatory Framework On The Table
The G20 FMCBG communique, issued on Thursday after their fourth and final meeting under the Indian presidency in Marrakesh, Morocco, stated:
“We adopt the roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets…We call for swift and coordinated implementation of the G20 Roadmap, including implementation of policy frameworks; outreach beyond G20 jurisdictions; global coordination, cooperation and information sharing; and addressing data gaps,”
The communique stated that the G20 FMCBG would require regular and structured updates from the IMF and FSB regarding the implementation progress of the roadmap. Additionally, it expressed support for the ongoing work and global adoption of standards set by the Financial Action Task Force (FATF) on crypto assets.
G20 Consensus on Crypto Assets
The roadmap adoption aligns with the consensus reached at the recent G20 Leaders’ Summit in New Delhi. During this summit, leaders endorsed the synthesis paper as a foundation for further exploration of crypto assets. Furthermore, they called for prompt implementation of a crypto-asset reporting framework to enhance tax authorities’ visibility into crypto transactions and their participants.
Read Also: Just In: G20 Forges Ahead with Global Crypto Framework
The G20 leaders acknowledged that while crypto assets could provide advantages in terms of financial inclusion, innovation, and efficiency, they also pose risks related to consumer and investor protection, market integrity, tax evasion, money laundering, terrorism financing, and financial stability.
G20 Efforts to Strengthen MDBs
The G20 FMCBG communique covered various important topics alongside crypto assets. These included the strengthening of multilateral development banks (MDBs), management of global debt vulnerabilities, enhancement of cross-border payments, support for sustainable recovery from the COVID-19 pandemic, and advancement in climate action.
According to the communique, the ministers expressed their commitment to drive ambitious efforts in evolving and reinforcing MDBs to tackle 21st-century global challenges with a specific focus on addressing the development needs of low and middle-income countries.
Furthermore, it emphasizes the necessity for further proactive implementation of the G20 Independent Review of MDBs’ Capital Adequacy Frameworks (CAFs) within MDBs’ own government structures while ensuring their long-term financial sustainability.
Read Also: Breaking: IMF And FSB Releases G20 Summit Paper On Crypto Asset Regulation
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin Price News: European parliament on Thursday voted in to pass MiCA, the first comprehensive rules for digital crypto asset service providers. This includes all sorts of crypto assets and stablecoins. Bitcoin (BTC), the world’s largest crypto price dropped by over 2% in the last 24 hours.
Also Read: Collapsed Crypto Exchange Thodex Boss Detained In Turkey
As per reports, EU lawmakers voted in 517 in the favour of MiCA, while it received 38 votes against the set of rules. This is the first time that governments came together to supervise the emerging crypto industry. However, this development comes in when the market saw the horrible collapse of several crypto exchanges and projects.
(THIS IS A BREAKING NEWS)
The post Just-In: EU Parliament Votes In To Regulate Crypto; Bitcoin Drops 2% appeared first on CoinGape.
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As cryptocurrency regulations continue to threaten the future of Web3, many investors are seeking the most secure cryptos to invest in. While Monero (XMR) has been a leading project in the blockchain movement for some time, Metacade (MCADE) now looks like a better option long-term.
Monero could see disastrous price action thanks to the encroachment of cryptocurrency regulation. Meanwhile, Metacade continues to see massive success during its early stages. So, which project is the best long-term investment?
How is cryptocurrency regulation impacting the industry?
As a leading privacy-focused blockchain, the future of Monero is in jeopardy. Cryptocurrency regulation has cracked down on private protocols in the wake of the Tornado Cash incident in 2022. Tornado Cash was a protocol that made blockchain transactions untraceable, which led to the arrest of its founding developer.
This news has cast doubt over the future of Monero and the XMR price by extension. The XMR price has previously reached highs over $500, but now investors are seeking more secure investments due to major cryptocurrency regulation.
One of the most popular options for crypto investors in recent times has been Metacade. The MCADE token presale has attracted $10.9m in 16 weeks since the event went live, owing to a strong value proposition and an ability to serve a huge number of users over time.
What is Monero?
Monero is one of the oldest cryptocurrencies in the top 50, being created in 2014. It uses a proof-of-work consensus mechanism and advanced cryptographic technologies to mask the identity of its users. As one of the most popular private blockchains, Monero has been a leading project in Web3 since it was first launched.
While most blockchains have a public ledger that records private addresses, transaction amounts, and more information that can be traced back to the sender, Monero obfuscates much of this data. As a result, sending money over the Monero blockchain is completely private and secure.
Can the XMR price reach $200 in 2023?
The XMR price has fallen 70% since reaching its all-time high in 2021. After the Tornado Cash incident and tightening cryptocurrency regulations, many experts have suggested that the XMR price may struggle to regain its previous price level.
A key target for the XMR price is $200. Monero faces stiff resistance at this price level, and it may struggle to break through over the coming years. XMR price action will be shrouded with uncertainty for as long as Monero remains an industry-leading private blockchain due to ongoing cryptocurrency regulations.
What is Metacade?
Metacade is the first community-driven arcade. The platform combines advanced earning mechanics with the largest collection of blockchain arcade games to deliver a comprehensive GameFi experience.
The metaverse arcade will be home to a massive range of different titles, and it will also become a central hub for Web3 users to enjoy. This is because Metacade’s offering goes beyond the arcade, as users can uncover some of the best alpha in the blockchain gaming space directly through the platform.
How does MCADE work?
The MCADE token will be used to pay for rewards in the arcade. Metacade offers both casual and competitive gameplay, allowing players to play solo or join paid entry tournaments for the chance to win major crypto prizes.
The community hub will also reward content creators through the Create2Earn mechanic. Users can contribute by posting game reviews, sharing alpha, interacting with other members of the community directly, and earn MCADE tokens in the process.
Metacade is also advertising jobs for Web3 users through its Work2Earn feature. Whether looking for freelance work, part-time gigs, or full-time roles at major Web3 companies, Metacade can connect professionals to exciting new positions.
Can MCADE reach $1 in 2023?
The MCADE token presale has attracted massive attention due to the vast promise being shown by the new project. Once the presale is complete, MCADE will be launched on exchanges, which could boost buy pressure even further.
Experts are forecasting major gains for Metacade in 2023 and beyond, with $1 being a key price target this year. Not only will the token go live on exchanges in 2023, but the metaverse arcade will also open its doors and begin to offer an exciting GameFi experience to players from all over the world.
MCADE vs. XMR price prediction: Which is the best investment?
As cryptocurrency regulation continues to crack down on privacy-focused protocols, Monero seems like a risky long-term investment. On the other hand, Metacade is just starting to make a name for itself as a leading project in the blockchain gaming movement, which gives it tremendous potential for the future.
Without a doubt, Metacade looks like the best investment right now. However, investors do need to be quick to buy MCADE at the best possible price, as the value of MCADE is rising from $0.008 to $0.02 during the presale. Web3 projects such as Metacade are heavily favored by cryptocurrency regulation when compared to projects that protect user anonymity, so it will be fascinating to see how the future unfolds for these two projects.
You can participate in the Metacade presale here.
Russian Deputy Head of the Ministry of Industry and Trade in a speech today at the United Russia discussion platform revealed the country’s move to regulate crypto mining. He was speaking on the development of blockchain technologies and the regulation of digital financial assets.
Crypto Mining Consumes More Electricity Than Agriculture
Crypto mining has reportedly been said to consume over 2% of Russia’s total electricity energy despite mining activities falling within the gray zone. That is, even more than the total energy supply consumed by Agriculture. Talks of legalizing mining of cryptocurrencies in Russia began after a proposal to ban all cryptocurrency activities in the country was published in a report by the country’s Central Bank.
Speaking early last month, Russian Prime Minister, Mikhail Mishustin, revealed the government and the Central Bank were in agreement over the prohibition of cryptocurrency as a legal tender, though mining activity was subjected to discussion.
According to Shpak, while cryptocurrency currently falls in the gray zone, its high electricity consumption makes it worthy of being considered an industrial activity. He believes “mining must be recognized, regulated and built into industrial activity.”
New Russian Crypto Bill Disannuls Promise Of Amnesty To Crypto Miners
According to the website of the house, a bill “On Mining in Russian Federation ” was submitted to the lower house of the Russian parliament, the State Duma, on the last Friday of April.
The bill mandates all crypto users and miners in the country to register and only registered entities would be granted mining rights. An amnesty program was put in place to allow registered miners clear themselves with customs.
Less than a month later, the draft of the crypto mining bill has been remade. The new bill, which was presented to the house last Friday, has witnessed an omission of several key points from the first draft. From a general perspective, the text contained within the bills are unchanged but certain subsections have been found to be missing. Two outstanding subsections now missing are the provision of a mining registry for registered users and the promise of amnesty to those registered users.
The absence of a mining registry means there is a provision of a standard procedure for companies wishing to be corporately registered. The promise of amnesty has been written off as they could “possibly incur costs on the federal budget.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin and cryptocurrency prices are in the red this week.
The bitcoin price fell below $40,000, and is now 15% down from its March highs. Ethereum’s price dropped 7.8%, BNB 3.6%, terra 20%, solana 13.8%, cardano 12.9%, and XRP 0.7%, and dogecoin 2.12%.
Meanwhile, last week Treasury Secretary Janet Yellen gave her first speech about cryptocurrencies and their regulation. While her address had an unexpected pro-crypto undertone, Yellen called for a tougher regulatory stance.
“Consumers should be protected from fraud regardless of whether assets are stored on a balance sheet or distributed ledger…. Money-laundering and other illicit activity should be deemed illegal, and it doesn’t matter whether you’re using checks, wires or cryptocurrency,” she said.
Yellen also made a few subtle remarks that may hint at how regulators will guide crypto policy in the future.
[Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Treasury Secretary Janet Yellen
The Digital Dollar
For much of the past century, the dollar enjoyed the benefits of the world’s reserve currency. And Yellen stressed that retaining this privilege should be regulators’ priority in their approach to digital assets.
“The development of our currency to its current form has been a dynamic process that took place over centuries. Today, monetary sovereignty and uniform currency have brought clear benefits for economic growth and stability. Our approach to digital assets must be guided by the appreciation of those benefits,” she said.
As such, Yellen believes, that while the government should push for financial innovation that ensures “competitiveness and growth,” it should also pursue its “national security interests.”
She suggested that a central bank-issued digital currency (CBDC) could fulfil the need for a digital currency while retaining America’s reserve currency privilege.
“… a CBDC could be the next evolution in our currency. A recent report by the Federal Reserve opened a public dialogue about CBDCs and the potential benefits and risks that could be associated with issuing one in the U.S.”
Later she made an explicit remark that clarified her stance on the decentralized vs. centralized currency debate: “Sovereign money is the core of a well-functioning financial system,” she said.
The Rise of CBDCs
Governments across the world are showing more and more interest in CBDCs.
As I wrote recently, “87 countries (which make up over 90% of the world’s GDP) are considering launching their own digital currencies, according to Atlantic Council. 14 are on a test run, including China, and nine have already launched, with Nigeria introducing last.”
The U.S. is jumping on the bandwagon, too.
Last month, Biden issued an executive order calling on government agencies to research and design a digital dollar prototype as a way to reinforce America’s financial leadership and protect “national security.”
“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC….These efforts should include assessments of possible benefits and risks for consumers, investors, and businesses; financial stability and systemic risk; payment systems; national security; the ability to exercise human rights; financial inclusion and equity; and the actions required to launch a United States CBDC if doing so is deemed to be in the national interest,” the executive order said.
How would the rise of CBDCs affect cryptos?
During a congressional hearing last July, Fed Chair Jerome Powell, in effect, said a digital dollar would annihilate private cryptocurrencies, especially stablecoins. “You wouldn’t need stablecoins; you wouldn’t need cryptocurrencies, if you had a digital U.S. currency,” he said.
Others believe privacy concerns over a centralized, state-controlled digital currency would have the opposite effect. And that the adoption of CBDCs would counterintuitively motivate more people to park their money in decentralized stores of value.
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Another country has entered the cryptocurrency party, and it’s a big one. The United Kingdom’s Economic and Finance Ministry announced this afternoon that the country will be amending its regulatory framework to allow the introduction of stablecoins as a means of payment.
Sure, it’s not like Boris Johnson has gone full-El Salvador and introduced Bitcoin as legal tender, but it’s still an important step and one that may cause a domino effect, especially given it is coming from Britain.
The most criticised aspect of El Salvador’s Bitcoin initiative, of course, is the notorious volatility that Bitcoin suffers from. With stablecoins, that is not an issue, with their value pegged to fiat counterparts.
This is part of the reason that this announcement is such notable news – this is very much a targeted initiative looking at introducing crypto specifically as a means of payment, rather than simply loosening the overall regulation on the industry.
Her Majesty’s Treasury (otherwise referred to as the Exchequer – I’m still learning my British acronyms as I intend to move to London later this year), were quite bullish in their assessment of stablecoins in their statement Monday: “The rationale for doing this is that certain stablecoins have the capacity to potentially become a widespread means of payment including by retail customers, driving consumer choice and efficiencies”.
The statement continued that the amendment of regulation to facilitate these stablecoins was just one aspect of a “package of measures” aimed at incorporating blockchain technology into the UK and creating a “global hub” – so while payment is the first item on the list, as we just mentioned, the UK are also signalling their intent to eventually go beyond this niche and embrace the wider crypto industry, too.
With the volatility of “normal” cryptocurrencies rendering them impractical right now for commerce, stablecoins are primed to take the step up…if regulators get on board. This move by the UK, therefore, is a massive signal of intent – because it is so achievable. “If crypto technologies are going to be a big part of the future, then we – the UK – want to be, and in on the ground floor” the Economic Secretary, John Glen, said at the Innovate Finance Global Summit. “In fact, if we commit now…if we act now…we can lead the way”, he continued.
Another interesting tidbit? The non-appearance of Central Bank Digital Currencies (CBDCs) in the announcement. This is very much looking at stablecoins such as Tether, Circle etc to be used as a medium of exchange, when many would have expected a CBDC announcement would have been more likely.
It’s a big marker to lay down, as the UK are now set to become one of the first countries to provide clear guidance to the crypto industry as to how stablecoins can be implemented. This story will grow and is far from over, but today was an important first step.
A shadow of fear and uncertainty over India’s cryptocurrency ecosystem is expected to end only after a global consensus emerges on regulating such assets, a Bloomberg report on Friday (New Delhi time) indicated.
A source at the Indian Finance Ministry told Bloomberg that the government is not expected to bring a law anytime soon to either regulate or tighten provisions for the use of cryptocurrency in India.
See Also: Amazon India Hints At Metaverse Launch On This Blockchain
This came months after the Indian Finance Minister Nirmala Sitharaman, in her Union Budget 2022-23 speech, announced that under the new scheme, all virtual assets such as cryptocurrencies, NFTs, that are sold at a profit would be taxed at the rate of 30 percent. The new rules came into force on Friday.
In his address to the World Economic Forum in January, Indian Prime Minister Narendra Modi also said a global uniform approach to cryptocurrencies is needed, and steps by one nation will not be sufficient.
Despite the fear of a blanket ban and higher tax slabs, assets like Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD have seen a stark rise in popularity in the country.
India’s cryptocurrency market saw a staggering growth of 641% between July 2020 and June 2021, making it one of the world’s fastest-growing, according to a report from the cryptocurrency research firm Chainalysis.
Crypto Flipsider News – DoJ Seizes $3.6 Billion from Bitfinex Hack, Bitfinex Surges 60%, Shiba Inu Enters Metaverse, LEASH Gains 45%, Russia to Regulate Crypto, OpenSea Delists CryptoPunks, Sotheby’s to Auction CryptoPunksRead in the Digest:
- Department of Justice seizes $3.6 billion stolen from Bitfinex hack, Bitfinex surges 60%.
- enters metaverse with ‘Shiba Lands,’ LEASH jumps 45%.
- Russia set to regulate crypto, donations to Ukraine NGOs soar.
- OpenSea delists CryptoPunks v1, Sotheby’s to auction 104 CryptoPunks.
Department of Justice Seizes $3.6 Billion Stolen from Bitfinex Hack, Bitfinex Surges 60%
In August 2016, Bitfinex suffered one of the biggest crypto exchange hacks to date when 119,754 Bitcoin was stolen, worth approximately $5.2 billion at current prices. On February 8th, the U.S. Department of Justice announced the recovery of a significant portion of the stolen funds.
The DoJ reported that it had arrested Ilya Lichtenstein and his wife Heather Morgan, who together conspired to launder funds stolen from the Bitfinex hack. In addition to this, the DoJ lawfully seized and recovered more than 94,000 bitcoins, worth over $3.6 billion.
Following the announcement, the Hong Kong-based crypto exchange announced that it would work “with the DOJ and follow the appropriate legal processes to establish our rights to a return of the stolen bitcoin.”
The value of Unus Sed Leo (LEO), a token launched by Bitfinex, has jumped by more than 60% since the announcement was made. Initially opening for trade at $4.87, LEO has since skyrocketed to a new all-time high of $8.04.
The 48 hour price chart for Unus Sed Leo (LEO). Source: Tradingview
Flipsider:
- Bitfinex promised to burn an amount equal to 80% of the recovered funds in order to repurchase and burn outstanding LEO tokens within 18 months of the recovery.
Why You Should Care
After almost six years, the victims of the Bitfinex hack can perhaps finally expect to recover their lost funds.
Shiba Inu Enters Metaverse with ‘Shiba Lands,’ LEASH Jumps 45%
Two weeks after revealing its metaverse project dubbed ‘The Shiberse,’ the developers of popular meme coin Shiba Inu have announced that its community can now obtain and own virtual pieces of land in the Shiba Inu Metaverse.
The Shiba Inu team announced that it would be introducing land, a queue system, and more in the virtual reality as part of its ecosystem expansion. The Shiba Army can now purchase land in order to get a front-row seat in the dog themed metaverse as per the announcement.
As part of the reveal, the Shiba Inu Team stated that $LEASH holders will be the first to gain access to Shiba Inu metaverse Lands. The proclamation caused the price of LEASH to jump by more than 45%.
Over the last 24 hours, Doge killer (LEASH) has gained in value by 46%, making it one of the day’s best performers. After grazing an interday high of $1,886.19, LEASH is now trading at $1,766.1, with a market cap of $190 million as of this writing.
The 24 hour price chart for Doge Killer (LEASH). Source: Tradingview
Flipsider:
- Though it remains one of the Shiba army’s most anticipated events, a listing for SHIB on Robinhood (NASDAQ:) continues to elude the project.
Why You Should Care
With its metaverse and other upgrades coming in 2022, Shiba Inu is aiming to change the face of the meme coin for the better and battle for a top spot.
Russia Set to Regulate Crypto, Bitcoin Donations to Ukraine NGOs Soar
After weeks of uncertainty following the proposal that tabled a blanket ban on crypto transactions, trading, and mining operations, Russia is set to propose a regulatory framework for the industry on Friday, February 11th.
According to a statement released on Tuesday, the Russian government and the country’s central bank have agreed to draft legislation and amend existing laws recognizing crypto as a form of currency.
Early reports suggest that the framework could integrate digital currencies into the nation’s financial systems. In addition to this, Russia is aiming to “minimize the threat to the financial system’s stability and reduce the use of cryptocurrencies for illegal purposes.”
Flipsider:
- Responding to the rising tensions in Ukraine, volunteer groups have been crowdfunding bitcoin to support the country’s military.
- NGOs and volunteer groups received more than $550,000 in 2021, and have already amassed $6,000 in 2022 as Russian troops occupy Ukraine’s borders.
Why You Should Care
The report represents a significant turn from last month’s proposed ban on all crypto activities, and eliminates the possibility of a repeat of China.
OpenSea Delists CryptoPunks v1, Sotheby’s to Auction 104 CryptoPunks
CyptoPunks v1 – a collection of 10,000 uniquely generated characters – has been delisted by the largest NFT marketplace in the space, OpenSea. The NFT platform delisted CryptoPunks v1 after being served a Digital Millennium Copyright Act takedown notice by Larva Labs, creator of the original CryptoPunks – one of the oldest NFT collections in the industry.
According to reports, the CryptoPunks v1 collection was created due to a smart contract bug through which Larva Labs attempted to create CryptoPunks v2, a sequel to the original set.
Sotheby’s, the auction house famous in the cryptoverse for Beeple’s $69 million NFT sale, has announced it will be auctioning off 104 NFTs from the original 2017 CryptoPunks collection. The collection will be sold as a single lot on February 23rd. The collection was originally purchased in the legendary “Punk Sweep” of July 2021.
Initially bought for $7 million in 2021 by anonymous collector “0x650d,” the auction, titled “Punk It!” is estimated by Sotheby’s to fetch between $20 million & $30 million.
Flipsider:
- Despite being delisted from OpenSea, CryptoPunks v1 recently debuted on competing for NFT platforms such as LooksRare.
Why You Should Care
The newest upcoming Sotheby’s auction is a true indication of just how much the digital art sector has grown since its inception.
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The Central Bank of Ecuador is planning to come up with a framework to regulate Cryptocurrencies by the end of this year. Guillermo Avellan, the manager of the Central Bank of Ecuador reportedly said that this will give more clarity to the cryptocurrency investors and also help to prevent crimes related to money laundering.
Will BTC be a legal tender in Ecuador?
The Central Bank of Ecuador is all set to prepare and implement cryptocurrency-specific regulations in the country. Talking with Bloomberg, Guillermo Avellan, manager of the Central Bank said that they are planning to expand the financial inclusion of Ecuadorians and regulate the use of cryptocurrencies in the country.
Guillermo Avellan further explained that the new regulation would not make BTC or any other cryptocurrency a legal tender, as what happened in El Salvador. Instead, the regulation would bring more clarity to the status of crypto in the country. In the first quarter of 2022, the Central Bank will formulate a regulation on the use of cryptocurrencies in Ecuador so that holders can know what the limits are, despite the fact that the dollar is the only legal tender in the country.
Avellan did not give specific dates regarding Crypto regulations, however, he suggested that they will be done with it by the end of the 3rd quarter in 2022.
We are going to work in the first quarter of 2022 so that it can be reviewed and approved between the second and third quarters of the year by the Monetary Board, said Guillermo Avellan
- Global adoption of Cryptocurrency
The cryptocurrency ecosystem has witnessed a huge spike in adoption all around the globe. El Salvador on 25th November 2022, legalized any cryptocurrency, including bitcoin, for use as a legal tender.
Countries like the U.S. and Canada have legally permitted trading in virtual currencies, while others like China and Russia have prohibited it by the law. Recently, India recognised Bitcoin and other cryptocurrencies during the Budget session and announced a flat 30% tax on income generated from it.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
The host of Mad Money, Jim Cramer, has warned about dogecoin (DOGE). He said that the meme cryptocurrency is a security and will be regulated. He also questioned the supply of dogecoin.
Jim Cramer’s Dogecoin Warning
Jim Cramer, the host of CNBC’s Mad Money, warned about investing in dogecoin (DOGE) Thursday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
“Please be careful with dogecoin,” he tweeted, adding that the meme cryptocurrency “is a security” and “will be regulated.” In addition, he wrote: “We will find out how many there are and how many are being created each day to make money for the exchanges.”
Cramer’s comment about the popular meme coin, which also aired on CNBC Thursday, has drawn a lot of attention on Twitter.
Many people disagreed with Cramer. Some expressed to the Mad Money host that dogecoin is not a security, questioning how he came to the conclusion that it is. Some people slammed Cramer for his lack of knowledge of blockchains and DOGE’s supply.
Dogecoin co-creator Billy Markus replied to Cramer:
Please learn how blockchain works. It’s already well known how many there are and how many are created everyday. It is in the public code on the public blockchain, easily viewable by anyone.
“In terms of ‘security,’ it is a proof-of-work cryptocurrency so you have to put in work to retrieve the coins from the block. It doesn’t qualify under the Howey Test. It works the same as bitcoin. In fact, it’s 99.5% the same code as bitcoin. Please educate yourself,” Markus stressed. He further tweeted that Cramer’s warning is “The biggest bull signal ever for dogecoin.”
SEC Chairman Gary Gensler is currently focusing on regulating cryptocurrency exchanges. He believes that many cryptocurrencies listed on exchanges are securities and must be registered. However, the SEC boss has refrained from discussing any particular crypto, including ether. The SEC is also currently in an ongoing lawsuit with Ripple Labs and its executives over the status of XRP.
Dogecoin is the 11th largest cryptocurrency by market cap. At the time of writing, the price of DOGE is 16.60 cents based on data from Bitcoin.com Markets. Its market cap is about $22 billion.
The meme cryptocurrency has many supporters, including Tesla CEO Elon Musk and Shark Tank star Mark Cuban. Musk sees dogecoin as the best cryptocurrency for transactions.
Recently, Tesla began accepting DOGE for some merchandise. Musk, who is known in the crypto community as the Dogefather, also personally owns some dogecoins.
What do you think about Jim Cramer’s dogecoin warning? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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