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Dogecoin Co-Founder slams Crypto Industry

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“Cryptocurrency is a scam and always has been,” are the words used by Dogecoin creator Jackson Palmer to describe the burgeoning digital currency ecosystem, as he resurfaced on Twitter after two years of absence.

But Palmer didn’t stop there.

He described cryptocurrency industry to be “a right-wing, hyper-capitalistic system, serving the protection of powerful cartel of wealthy figures.”

 After Dogecoin co-creator unexpectedly abandoned the networking platform YouTube and turned his Twitter account private in mid-2019, on Wednesday, he made an opinionated return on Twitter with message: Cryptocurrency’s a scam and always has been.

“I am often asked if I will ‘return to cryptocurrency’ or begin regularly sharing my thought on the topic again. My answer is ‘no,’ but to avoid repeating myself I figure it might be worthwhile briefly explaining why I’m here,” this is how the co-creator of meme-based cryptocurrency announced his return via a tweet.

Back in 2013, IBM software engineer Billy Markus and Palmer brought Dogecoin to existence as a joke based on the “Doge” meme, presenting it to the public as nothing but a prank.

However, the cryptocurrency’s blockchain still has merit, with its underlying technology derived from Litecoin using a scrypt algorithm – a password-based key derivation function. Since its release, Dogecoin has soared off making it one the world’s top ten cryptocurrencies by market value.

In this case, it is vital to highlight the fact that Palmer created a prank cryptocurrency provides some insight regarding his stand towards Bitcoin, and his recent tweets further enforce this idea.

The Dogecoin co-creator lashed on cryptocurrency referring to it as a scam and it is regulated by an influential cartel of wealthy individuals. Then, he continued by stating that it is used by rich figures to grow their fortune by evading tax, diminishing regulatory oversight and artificially imposing scarcity.

“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,” he tweeted.

Moreover, he resumed with his criticism as to how crypto is shared and marketed, by announcing that the cryptocurrency trade influences a private network of shady business connections.

According to Dogecoin father, financial exploitation has always been a thing and wealthy people have been exploiting it since the rise of digital currencies. However, he believes the crypto space was created as an additional mean to perpetuate a cult-like “get rich quick” funnel structured to attract money from the financially gullible and unwise individuals.

Despite Dogecoin’s ballooning rise this year, the technology-based cryptocurrency has also had its turn in Palmer’s bashing against the industry. To him the technology was originally designed to limit consumers protection, leaving them subjected to the industry’s laws.

“Cryptocurrency is like taking the worst parts of today’s capitalist system (e.g. corruption, fraud, inequality) and using software to technically limit the use the interventions (e.g. audits, regulation, taxation) which serve as protections or safety nets of the average person,” he resumed his criticism.

From another aspect, Palmer’s co-partner, Markus indirectly reinforced his counterpart’s threads against the crypto industry in a tweet of his own.

“There’s a lot of terrible people who are involved in the crypto space, and I completely understand why he would feel negative about it. I understand his perspective and we both saw mostly the negative side of all this,” Markus wrote in a thread.

Despite being the creator of the viral dog coin, Markus has not been involved in the development of the currency.

Correspondingly in 2018, Palmer informed Vice that he made no profit from his association with the Dogecoin project. Prior to that, in 2015 he announced his “extended leave of absence” from the “toxic” world of cryptocurrency.

The crypto market’s value is estimated to be yielding a market capitalization of roughly one trillion dollars, according to CoinDesk.

Cryptocurrencies’ value is constantly fluctuating, and this year provides an exemplary demonstration of this variation. Bitcoin, the most widespread currency of the lot, witnessed its price peak at over $63,000 in mid-April before roaring down a month later to mid $30,000.

As for the prank coin, Dogecoin‘s value witnessed its peak by leaping from about $0.06 per coin to over $0.63 per coin to later face its plunge, similarly to its predecessor Bitcoin.

According to CoinGecko, Doge prices have slumped 73 percent from their May 9 all-time high of $0.731 but were trading up to 4 percent on the day at $0.196.

Cryptocurrency

Cryptocurrencies reach post record inflow, rise of the Omicron asset

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CoinShares revealed Monday a heavy institutional investor flow into cryptocurrency products and funds despite a substantial drop in the past weeks, as a new digital asset emerges to the scene, carrying the same title after the new coronavirus variant, the Omicron.

Despite its rising record inflows in 2021’s first 11 months, cryptocurrency has marked a new all-time low with the arrival of a new COVID-19 variant.

As of November 26th, digital assets’ total incursions into the cryptocurrency sector reached a whopping $9.5 billion, compared to 2020’s Bitcoin inflow of $6.7 billion, with a matter of one week reaching $306 million.

According to data from digital asset manager CoinShares, Bitcoin witnessed its heftiest inflow of $247 million after releasing another investment asset in Europe. During that time, European Investment management firm Invesco issued its bitcoin exchange product in the continent, according to media reports.

Concurrently, asset manager WisdomTree also registered a trio of cryptocurrency basket exchange-traded products (ETP) into the Swiss Stock Exchange (SIX) and Frankfurt-based Börse Xetra, as stated by CoinDesk. 

In parallel, CoinShare also unveiled that cryptocurrency has attained global inflow tallying to $2.7 billion for 11 consecutive weeks. Last week, the world’s largest crypto asset, Bitcoin, endured a heavy price drop by 2.3 percent, following a 10.4 percent from a prior week.

Last Friday, Bitcoin endured another plunge of almost 9 percent as investors abandoned the decentralized currency with fear of heavy impact support by the emergence of a new COVID-19 variant, Omicron, with last value fluctuation rising to 2 percent, with Bitcoin value reaching $58.483.

However, the globally renowned asset quickly recovered from its demise, following global markets attaining a smoother and soother bearing in valuation on Monday.

“Inflation is skyrocketing, and people are searching for more alternatives for their money in the bank,” chief of cloud-based automated crypto trading bot Cryptohopper, Ruud Feltkamp, said in a statement.

“I don’t think it’ll take long until investors see this as a ‘cheap’ buying moment. We are still in the midst of the bull cycle, and I think rising inflation will lead to more money being allocated to stocks and crypto,” he further added. 

Shortly after presenting itself to the investor registry, the value of the newly risen digital asset hit $688 from Friday till Monday, before witnessing a plunge of approximately 75 percent, CoinGecko revealed.

Omicron, defined as “a decentralized treasury-backed cryptocurrency protocol,” initiated trading at around $371, and by Thursday, it marked an estimated value of $65.

Last week, the World Health Organization branded the latest coronavirus variant Omicron, with an expanded list of countries broadcasting the hazardous intensity of it carrying “very high” worldwide threats of waves, even though scientists revealed that would take weeks to fully comprehend the severity of the variant spread on a global scale.

While the ambiguity of Omicron’s launch date lingers, data from GoinGecko demonstrated that the token emerged on the scene on November 8th, with a Telegram channel labeled OmicDAO was launched a day before.

Currently, there is no official and direct representative of the Omicron token.

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U.S. federal agencies aim to clarify crypto legality

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U.S. regulators uncovered their future plan to address the rise of cryptocurrency for the upcoming year, with focus directed at the “greater clarity” concerning the legality of decentralized transactions, reported by Bloomberg.

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) unveiled their future scheme to address the uprise of cryptocurrency, placing the digital asset with utmost priority for 2022.

The plan could potentially focus on stablecoin issuance via loan collateral and the manifestation of cryptocurrency on enterprise balance sheets. The three federal entities aim to examine the needed means to employ bank capital and liquidity standards to U.S.-based banking organizations.

The shared roadmap has yet to be finalized, given that the agencies are looking into different issues to accommodate the market’s changes. It will adhere to crypto policy “sprints” to assist in structuring regulatory priorities for the upcoming year.

The OCC, the Reserve, and the FDIC’s goals are to determine any potential threats and establish the efficacy of current rules. While there is no certainty that the roadmap will create fundamental changes, however, one thing is certain though, it will not work in favor of holders of decentralized assets.

The American regulatory move on cryptocurrency will proceed with caution, with crypto users having to proceed with cautions and hold back on specific activities to adhere to the word of law.

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Consortium of Japanese firms assesses digital currency for 2022 launch

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A consortium of almost 70 Japanese firms revealed on Wednesday in a conference its plan to initiate an experimental phase of testing a yen-based digital currency to be ready for launch in early 2022.

Three of the country’s mega-banks have always shown intentions of joining on the decentralized currency, which will mainly be supported by bank deposits, while utilizing a known platform to hasten a transfer of massive funds and settlement between companies, including cutting costs.

The consortium will incorporate Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc, and Sumitomo Mitsui Financial Group Inc. Tmizhuhese companies have had meetings regularly for the past year to examine the required measures to create a widespread infrastructure for digital payments.

In parallel, Japan’s three mega-banks also represented their private digital payment systems but have failed to mirror the same effort provided by financial technology entities, such as Softbank Group-backed PayPay – the multinational conglomerate is not a part of the consortium.

“A digital currency system built on a bank deposit-backed common platform will fit the Central Bank Digital Currency (CBDC) that could be planned and implemented in Japan,” special advisor to DeCurret and former head of Japan’s Financial Service Agency, Toshihide Endo, said during Wednesday conference.

The Japanese consortium will also incorporate a multitude of lenders, including Japan Post Bank Co Ltd, brokerages and insurers, and non-financial companies, such as Nippon Telegraph Corp, Kansai Electric Power Co Inc, and East Japan Railway Co.

In addition, other companies will also investigate options to gauge a currency such as this, all while experimenting with different uses for the digital currency in various industries, from energy to retail.

From another aspect, the consortium’s approach to releasing its own plan to digital currency will most likely trickle down the Bank of Japan’s scheme of launching its own CBDC, with regulators revealing they are working in synchronization with the BOJ if a digital currency is to be issued.

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