Jackson Palmer says retail investors have been sold a false promise that they'll one day be billionaires.
The co-founder of Dogecoin has launched a blistering attack on the cryptocurrency sector.
Jackson Palmer had invented the cryptocurrency as a joke in 2013, but gave away or sold all of his holdings just two years later because the community made him uncomfortable.
In a brutal Twitter thread, Palmer said he had no plans to return to the digital assets space, writing:
“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.”
Palmer also rejected the argument that the crypto world is decentralized — and claimed the industry “is controlled by a powerful cartel of wealthy figures who, with time, have evolved to incorporate many of the same institutions tied to the existing centralized financial system they supposedly set out to replace.”
He went on to allege that shady businesses, bought influencers and pay-for-play media outlets have perpetuated a “cult-like ‘get rich quick’ funnel designed to extract new money from the financially desperate and naïve.”
Palmer didn’t stop there. He claimed crypto takes the worst parts of today’s capitalist society — corruption, fraud and inequality among them — all while using software to limit the use of interventions such as audits, regulation and taxation. Because of this, the software engineer said this removes protections and safety nets for the typical consumer. He added:
“Lose your savings account password? Your fault. Fall victim to a scam? Your fault. Billionaires manipulating markets? They’re geniuses.”
He went on to say that even the most modest critique of cryptocurrency results in smears “from the most powerful figures in control of the industry and the ire of retail investors who they’ve sold the false promise of one day being a billionaire.”
As a result, Palmer said that he no longer makes an effort to talk publicly about crypto because many are “unwilling to engage in a grounded discussion.”
Unsurprisingly, replies to his lengthy Twitter thread were turned off.