Australian entrepreneur Jackson Palmer is shocked because the cryptocurrency Dogecoin he had created as a joke reached capitalization of $2 billion. He shares this news on Motherboard.
His intention of creating altcoin-mem Dogecoin in 2013 was to help not very advanced users to better understand the world of cryptocurrency. Reasonable price and nice community was to facilitate this process.
In 2015 the situation in the cryptocurrency world has changed completely, Palmer notices. New players with great investment potential and with plans to earn even more money appeared. Technologies stepped back. Then frenzy at the cryptocurrency market began, the highest point of this frenzy was in 2017 when its total capitalization reached an amount of $700 billion. Everyone started talking about cryptocurrency, considers the businessman.
He reminded about the classical maxima of bond market: “When your taxi driver is telling you to buy stock, you know it’s time to sell.” As Palmer writes he recalled the saying when Uber drivers started talking to him about Ethereum.
According to him ICO is the best illustration for this phenomenon. In 2017 initial coin offerings boom started, many of them were just a fraud, says Palmer.He gives an example of PlexCoin.
Earlier he had already said that he believed cryptocurrency market was a bubble. Anyway his is interested not in when it bursts but what will happen next:
“Once the cryptocurrency price bubble pops and takes all the hype with it, will the community be able to recover the energy it needs to build real, innovative technology once again?”
ConsenSys blockchain company CEO Joseph Lubin agreed, having stated that after the crypto-bubble disappeared the things would change significantly. Founder of NEO altcoin also shares this opinion.