Who runs the cryptocurrency industry
Jackson Palmer, DOGE creator, wrote a series of tweets in which he discusses who really runs the crypto market and assesses the current state of the digital asset industry. The programmer was at the origins of Dogecoin in 2013, but in 2015 he “took a long vacation” from cryptocurrencies and has only occasionally made himself heard about since then.
“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,” Palmer explained why would never return to the industry.
According to him, despite the declaration of “decentralization”, the digital asset market is under the control of the influential “rich man cartel”, which gradually began to closely cooperate “with many institutions of the centralized financial system, which they allegedly intended to replace.”
“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,” Palmer wrote.
In addition, he believes that cryptocurrencies are a combination of the worst qualities of the existing capitalist system “like corruption, fraud and inequality” and software for technical restriction of control, such as auditing, regulation and taxes.
“Lose your savings account password? Your fault. Fall victim to a scam? Your fault. Billionaires manipulating markets? They’re geniuses. This is the type of dangerous “free for all” capitalism cryptocurrency was unfortunately architected to facilitate since its inception,”- said the programmer.
According to Palmer, today, even “modest criticism of cryptocurrencies will cause defamation from influential figures who control the industry, and the ire of retail investors who bought into the false promise of becoming one day the next billionaire.” And an open, honest discussion of topical issues is almost impossible, he said.
At the end of May 2019, the head of the Ikigai cryptocurrency hedge fund, Travis Kling, noted that a group of serious investors had an impact on the rise in the price of bitcoin. He stated this after the Bitcoin rate has grown significantly over several months — from $4,100 to $8,300. This was due to the fact that the main cryptocurrency was acquired by several large investors, Kling said.
Also, the media more than once wrote that billions of dollars in BTC are in several wallets, and their owners are able to bring down the rate of digital currencies or push it to growth. For example, Tesla acquired 43 thousand BTC, and the software manufacturer MicroStrategy owns 92 thousand crypto coins.
Jackson Palmer’s reasoning that the cryptocurrency market is being manipulated by a group of wealthy people is probably close to reality. The whales hold a huge amount of digital assets in their hands. And if the problem of market regulation, for example, securities, is solved by legislation and authorities, then the cryptocurrency industry is still a “gray zone”.
“Cryptocurrency mining is a serious business: just remember the financial statements of Bitmain, according to which the company earned $742 million in the first half of 2018 and stores about $886 million in various cryptocurrencies. It would be strange that there would be no price manipulation in the market, where there are simply ideal conditions for this,” Mikhail Mashchenko, an analyst of the social network for investors eToro in Russia and the CIS, said earlier.