Jim Cramer, host of CNBC's Mad Money, warned on Thursday about investing in Dogecoin (DOGE). Cramer claimed that the Meme cryptocurrency is a security and will be regulated by the U.S. Securities and Exchange Commission.
"Please be careful with Dogecoin." Sharing his tweet, Cramer added that the Meme cryptocurrency “is a security” and will be “regulated”. Cramer also; “We will find out how much supply is in circulation and how much is produced every day to make money on the stock market.” added his words.
Cramer's comment on the popular meme coin, which also aired on CNBC on Thursday, garnered a lot of attention on Twitter.
Dogecoin Co-Founder: "Biggest Bull Signal Ever for DOGE"
On the other hand, many people disagree with Cramer. Some pointed out to the Mad Money server that Dogecoin is not a security, questioning how he came to the conclusion that it is. Some people have criticized Cramer for his lack of knowledge on Blockchain and DOGE's supply.
Billy Markus, the co-founder of Dogecoin, known as Shibetoshi Nakamoto on Twitter, quoted popular US TV personality Jim Cramer's tweet for Dogecoin and shared a tweet saying, "The biggest bull signal for Dogecoin ever."
Markus said that Dogecoin was mined using a proof-of-work (PoW) consensus protocol, similar to Bitcoin, advising Cramer to research cryptocurrencies better.
"Please learn how Blockchain works. Its circulating supply and how much is produced each day are already well known. Blockchains are in public code and easily visible to anyone. In terms of 'security', this is a proof-of-work cryptocurrency, so you have to work to get the coins off the block. In terms of security, this is a proof-of-work cryptocurrency, so you have to work to get the coins off the block. Not eligible under the Howey Test. It works the same as Bitcoin. In fact, it has 99.5 percent the same code as Bitcoin. Please educate yourself."