‘An inherently right-wing, hyper-capitalistic technology’, dogecoin co-creator slams crypto

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July 15 2021
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The co-creator of one of the world’s most talked-about cryptocurrencies has issued a warning to would-be investors.

‘An inherently right-wing, hyper-capitalistic technology’, dogecoin co-creator slams crypto

The co-creator of popular meme-crypto dogecoin has returned to social media with a scathing critique of cryptocurrencies.

Posting via Twitter for the first time since 2019, software engineer Jackson Palmer referred to crypto as “an inherently right-wing, hyper-capitalistic technology”, noting that after years of study, he’s come to the conclusion that crypto was built primarily to “amplify the wealth” of its proponents through a combination of “tax avoidance, diminished regulatory oversight and artificially enforced scarcity”.

Mr Palmer co-created dogecoin with fellow software engineer Billy Markus in 2013.

While it was originally conceived as a joke, the price of a single dogecoin now sits at $0.197. According to CoinMarketCap, that works out to a market cap of approximately $25 billion.

Contrary to its typical framing as decentralised, Mr Palmer claimed the crypto 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 centralised financial system they supposedly set out to replace”.

According to him, the crypto 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”.

“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 of interventions (e.g. audits, regulation, taxation) which serve as protections or safety nets for the average person.”

“Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost purpose-built to make the funnel of profiteering more efficient for those at the top and less safeguarded for the vulnerable,” he said.

Mr Palmer said that good faith debate in space is “near impossible”.

“These days, even the most modest critique of cryptocurrency will draw smears from the 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 fellow billionaire.”

“I applaud those with the energy to continue asking the hard questions and applying the lens of rigorous skepticism all technology should be subject to. New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences.”

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

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