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Jul. 16, 20217 min read

Dogecoin Co-Creator Slams Crypto As a Scam

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Written by Staff

  • Jackson Palmer returns to Twitter with a rant against cryptocurrencies…
  • Says wealthy capitalists have ruined crypto…
  • Raises concern about fraud…

Dogecoin co-creator Jackson Palmer posted his first tweet in two years this week, answering a burning question — whether he will ever return to cryptocurrency.

In a series of 9 follow-up tweets, Palmer explained why his answer to that question is “no.” 

First off, he said crypto is “an inherently right-wing, hyper-capitalistic technology.”

Palmer pushed back on claims that cryptocurrencies are “decentralized” saying the industry is “controlled by a powerful cartel of wealthy figures.”

He also said the industry perpetuates a “cult-like ‘get rich quick’ funnel” through “shady business connections, bought influences and pay-for-play media outlets.”

Palmer said the victims of that scheme are “the financially desperate and naive”.

Although he admits that type of exploitation existed pre-crypto, he said “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 the industry “is like taking the worst parts of today’s capitalist system (eg. corruption, fraud, inequality) and using software to technically limit the use of interventions (eg. audits, regulation, taxation) which serve as protections or safety nets for the average person.”

Palmer warned about the dangers of that system. 

He also criticized the lack of ability to have a debate about these issues saying, “But 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. Good-faith debate is near impossible.”

Palmer explained that’s why he has stayed quiet on cryptocurrencies since leaving Dogecoin. 

He ended the thread by saying, “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.”

When Did Palmer Ditch Crypto?

Palmer co-created Dogecoin with Billy Markus as a joke in 2013.

Palmer was a software engineer for Adobe at the time and is credited with creating the Dogecoin.com site. 

Markus was a software engineer for IBM and allegedly reached out to Palmer after seeing that site to actually create the coin. 

Markus then designed the protocol and the coin was introduced to the public in December 2013. 

But less than two years later, Palmer was out. 

In April 2015, he announced he was leaving the crypto community.

In a since-deleted tweet, Palmer said, “Will be taking an extended leave of absence from the toxic (and quite frankly, stagnant) space that is cryptocurrency.”

He also talked about some of the same issues he raised in his most recent statement against the industry.

“All in all, the cryptocurrency space increasingly feels like a bunch of white libertarian bros sitting around hoping to get rich and coming up with half-baked, buzzword-filled business ideas which often fail in an effort to try and do so.”

And in 2018, he spoke out against crypto again.

Image credit: Orpheus FX/Shutterstock.com

In an op-ed for Vice — My Joke Cryptocurrency Hit $2 Billion and Something Is Very Wrong —

Palmer criticized the exploding value of the cryptocurrency he had developed as a joke. 

Palmer said the vision of cryptocurrencies when he started Dogecoin was “to deliver a peer-to-peer alternative to cash that, through decentralization, did away with the need for trust in financial institutions, which the 2008 crisis showed to be unscrupulous, and often corrupt.”

He said he hoped the creation of his altcoin would just bring further innovation in the space. 

But that hope soon soured.

He said, “as I quickly learned, a passionate community of people throwing around money is like blood in the water to the shark-like scammers and opportunists.”

Palmer talked about his 2015 decision to exit the industry saying he “saw the space being overrun by opportunists looking to make a buck, rather than people investing in evolving the technology.”

He said he was re-entering the space after sitting back and observing for 3 years.

“These concerning observations have led me back into the cryptocurrency space to help educate my co-workers, friends, and family who are asking me if they should pour their money into cryptocurrencies. Hopefully, if I do my job, they will better understand the potential pitfalls of doing so.”

Back then he still had hope.

“I can’t concede that it’s game over for cryptocurrencies. It’s difficult to predict how much the current crypto bubble will inflate, or when it’ll burst (not if). The burning question on my mind is this: 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?”

Based on his tweets this week, it seems Palmer’s done with crypto for good. 

Featured image credit: Rokas Tenys/Shutterstock.com