Dogecoin co-founder: the crypto industry is controlled by a cartel of the wealthy

Dogecoin co-founder Jackson Palmer described cryptocurrency as “an ultra-right, hyper-capitalist technology” created to increase the wealth of the already wealthy.

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.

— Jackson Palmer (@ummjackson) July 14, 2021

According to Palmer, early supporters of cryptocurrency accumulate fortunes by avoiding taxes, taking advantage of a lack of regulation in the industry, and artificially creating asset scarcity.

“Despite claims of “decentralization”, the cryptocurrency 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,” Palmer wrote.

Despite claims of “decentralization”, the cryptocurrency 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.

— Jackson Palmer (@ummjackson) July 14, 2021

The co-founder noted that the digital asset industry is aimed at exploiting the least protected segments of the population. In his words, it has “taken the worst features of the modern capitalist system” and used technology to curb interventions such as audits and regulation.

“The cryptocurrency industry uses a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like “get rich quick” funnel designed to extract new money from the financially desperate and naive,” he said.

The cryptocurrency industry leverages a network of shady business connections, bought influencers and pay-for-play media outlets to perpetuate a cult-like “get rich quick” funnel designed to extract new money from the financially desperate and naive.

— Jackson Palmer (@ummjackson) July 14, 2021

Palmer stressed that he does not plan to return to the industry or discuss it on Twitter. He said that even modest criticism of cryptocurrencies would trigger a furious reaction from the influential figures who control the industry and from retail investors who were promised easy money.

In 2013, Palmer, together with Adobe Systems colleague Billy Markus, created the meme cryptocurrency Dogecoin. The developers did not expect the project to be taken seriously.

In January 2018 Palmer wrote an article for Vice, in which he stated that valuing the asset’s market capitalization at $2 billion was “very wrong”.

Now DOGE sits among the ten largest digital assets by market capitalization, at $25.41 billion, according to CoinGecko. Over the past year the price of the cryptocurrency has risen by more than 5,800%. At the time of writing the asset was trading at around $0.19.

The developers did not profit from this rally. They left the project long ago and sold their DOGE in 2015.

Unlike Palmer, Markus was not as radical in his remarks. He noted that the former colleague’s theses were generally valid, aside from the meaningless part about American politics.

I think his points are generally valid aside from the pointless American politics piece

— Shibetoshi Nakamoto (@BillyM2k) July 14, 2021

“There are many awful people in the cryptocurrency industry, and I fully understand why he feels negative about this,” Marcus wrote in another tweet.

Earlier in May, Palmer called Elon Musk a narcissistic con artist, and his appearance on Saturday Night Live was cringe.

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