Dogecoin price drop continues after Doge co-founder calls cryptocurrencies a ‘scam’ and China crackdown on crypto mining

Dogecoin prices have continued to decline since reaching their most recent peak last month on June 25, when memecoin appeared to rebound after the cryptocurrency market was hit hard by the Chinese government’s commitment. crack down on the country’s massive cryptocurrency mining operations.

The Chinese state authority’s announcement in June saw the prices of all major cryptocurrency plummet across the board – Bitcoin fans and investors alike fearing the worst when the most common cryptocurrency. popular in the world crashed and dropped below $ 30,000.

In particular, the usual business tendencies of ‘hodling’ (refusing to sell or trade cryptocurrencies when prices fall) and ‘buying down’ seemed to be further strained, as the continued Chinese crackdown brings even more volatility for the market, which can be expected at times.

While the price of Bitcoin has recovered from the initial crash and continues to be inflated by investor enthusiasm, fears about its ability to break above the average range of $ 30,000 and the value of Dogecoin remain.

Doge’s growth has slowed down considerably since the major crash that happened last month.

But that has also been hampered by the arrival of new alternative coins on the scene like “Baby Doge” and more recently the biting cryptocurrency criticism from Dogecoin co-founder Jackson Palmer.

Here’s what Dogecoin is, what it’s worth right now, and why it’s in trouble right now.

Much like Bitcoin, Dogecoin is an open source cryptocurrency that can be traded and traded on decentralized peer to peer networks between users, with valuable tokens harvested as rewards for users operating in place of banks or governments for ensure the validity of its transactions.

Paying homage to the shiba inu ‘doge’ meme that circulated all over the internet for years, Dogecoin was created in 2013 as a satirical version of the growing popularity of more traditional coins like Bitcoin and their cult.

But the coin has come full circle, it is now taken just as seriously as its crypto rivals after its visibility has increased worldwide in recent years.

Where this coin differs from Bitcoin, Tether, or Ethereum is that it has spread like wildfire due to its origins and appreciation by Tesla founder and cryptocurrency enthusiast Elon Musk.

Earlier this year, the irreverent tech billionaire rocked the crypto market when he announced that Tesla would suspend Bitcoin payments for its vehicles due to the currency’s massive environmental impact, and regularly poked fun at Bitcoin while praising Dogecoin online and inflating the price of memecoin.

Dogecoin’s price has remained low since it recently peaked at $ 0.263864 on June 30, according to CoinDesk.

This was a huge drop from its high in early May, when the coin’s rapid rise saw it reach a high of $ 0.0722320 on May 8.

Today (July 20), its value has fluctuated between $ 0.165747 and $ 0.176505 – with the coin’s price continuing to drop one to five percent over the past 24 hours, hitting a 24-hour low of $ 0.160001 at the time of writing.

This follows the emergence of a new alternative coin competitor that has eclipsed Dogecoin’s growing success, with ‘Baby Doge’ entering the market as the resident memecoin’s younger brother and already emerging as the new favorite coin of the world. ‘Elon Musk – pursuing a pattern of new variants, like the Shiba Inu coin, on Dogecoin.

However, the initial hype around Baby Doge appears to have died down, with the coin apparently showing a 40% drop in value this week.

But the continued decline in Dogecoin prices has raised fears among fans and investors for the cryptocurrency’s long-term success.

Unlike his former partner and co-founder Billy Markus, who recently said he invested in Dogecoin for the first time to help him recover from the June crash, Jackson Palmer has shown deep skepticism towards crypto. change.

The software engineer partnered with Markus in 2013 to create Dogecoin as a joke, poking fun at the cult fascination with Bitcoin as it skyrocketed in visibility and value in the 2010s.

But despite his initial intention to use Dogecoin as a way to encourage greater innovation in the cryptocurrency arena, Palmer announced that he would be taking an extended leave from the crypto world in 2015 and criticized its makeup considerably. rich, white and masculine.

On Wednesday (July 14), Palmer, in a rare reappearance on Twitter, rekindled such criticism of the industry.

In a series of tweets, Palmer mentionned that he had no intention of returning to cryptocurrency, calling it an “inherently right-wing hyper-capitalist technology built primarily to amplify the wealth of its supporters through a combination of tax evasion, regulatory oversight reduced and artificially applied scarcity “.

He continued, “The cryptocurrency industry relies on a web of shady business relationships, has bought out influencers and paid media to perpetuate a ‘get rich quick’ cult funnel designed to mine money. to the desperate and the financially naive.

“Financial exploitation undoubtedly existed before cryptocurrency, but cryptocurrency is almost specially designed to make the profit funnel more efficient for those at the top and less protected for the most vulnerable.”

Palmer’s criticisms have sparked a backlash from many in the crypto community who believe she can offer a powerful alternative to traditional financial and banking systems.

Nick Saponaro, co-founder and CIO of the Divi Project, a decentralized payments ecosystem aimed at “accelerating the adoption of digital currencies”, is one such figure who takes issue with Palmer’s criticism of cryptocurrency as system controlled by a select group of wealthy and elite individuals.

“All markets are manipulated to some extent,” he said.

“I would say crypto is one of the least, especially considering the manipulation of the stock market by players who wield inordinate power.

“How about the biggest companies in the world, like Amazon, actually paying $ 0 in taxes? I would say the traditional financial system has been co-opted by the elites to benefit their bottom line far more than cryptocurrency. “

Saponaro continued, “There are so many beautiful results due to the technology developed by the developers and the business people in this space that are completely ignored by [Palmer’s] argument.

“We have seen lives changed, families fed, businesses built, and freedom won by participating in crypto.”

Dogecoin price predictions following this continued fall have apparently put hopes that the coin will finally hit $ 1 or more in the near future, a little more out of reach.

The cryptocurrency closest to this historic threshold was seen in early May, before China’s latest moves to slow the flow of transactions and mining began to shake the market, with it. latest episode of volatility adding to growing fears about the long term health and sustainability of the crypto market and whether there is more instability to come.

Bitcoin and Ethereum, the currency primarily associated with the controversial NFT technology trend, have also seen larger price swings and drops since news of a crackdown in China sent shockwaves through the market.

Ethereum struggled to maintain values ​​above its benchmark of $ 2,000, while Bitcoin also remained stuck in the low to mid range of $ 30,000.

The two major cryptocurrencies fell today (July 20) as lingering fears over rising coronavirus cases and fears of reimposing lockdowns following the easing of restrictions around the world settled in in the market – with indices and European, US and UK stock markets falling on Monday morning.

With Ethereum falling to just over $ 1,750, signs of further instability in the market persist.

Additional reporting by Reuters journalist Julien Ponthus

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