Crypto Stories

Is Dogecoin (DOGE) A Security? CNBC’s Jim Cramer Calls Dogecoin A Security

By Gitumani Talukdar
Published January 21, 2022 Updated February 2, 2022

Jim Cramer, a veteran hedge fund manager and long-time host of CNBC’s “Mad Money,” today warned about the risks of Dogecoin. He called Dogecoin (DOGE) a security today almost nine months after its price and popularity peaked.

Earlier today, Jim tweeted to his followers and raised his concerns over Billionaire Elon Musk’s favorite cryptocurrency. The data used to drive this conclusion comes from Cramer’s co-founded website named “The Street”.

Web3 users claim that conventional media doesn’t comprehend bitcoin, Jim Cramer may be an example. In the tweet, the TV personality may be referring to the Dogecoin network’s tendency for manufacturing a significant amount of new DOGE each day—14.4 million new tokens, to be precise. The Bitcoin network, on the other hand, generates roughly 900 new BTC every day.

Is Dogecoin A Security ?

According to Preston Byrne, a partner at Anderson Kill specializing in decentralized protocols, Cramer is likewise incorrect in his assertion that Dogecoin is security.

“Several of the Howey limbs are not met, in my professional view, due to Dogecoin’s anarchic, jokey beginnings and the absolute absence of a central coordinating organization,” he said.

To put it another way, DOGE is not much of a security concern and would not be regulated by the Securities and Exchange Commission.  However, Markus, Palmer, or one of the part-time Dogecoin core programmers heading the project might have duped us. Maybe they’ve been tugging the strings the whole time. You’d practically have to chuckle in that situation.

Dogecoin was created primarily as a joke, not as a business enterprise. The founders of the initiative, Marcus and Jackson Palmer, have officially abandoned it. It wasn’t until Elon Musk used Twitter to promote the idea that it became widely known.