Barry Silbert, founder and CEO of the Digital Currency Group, the firm behind crypto industry giants such as Grayscale Investments and CoinDesk, has revealed he believes the meme-inspired cryptocurrency Dogecoin is not worth $37 billion.
The former CEO of Grayscale noted that DOGE is a cryptocurrency that will “certainly” not go away because of its passionate community. The cryptocurrency’s price surged this year after Tesla CEO and various celebrities supported it on social media.
Dogecoin was created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. It made headlines in 2014 after raising more than $25,000 worth of DOGE to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi.
The price of Dogecoin ultimately surged to hit $0.74 as a community effort attempted to get it to $1. DOGE’s rapid rise led to the creation of several other meme-inspired cryptocurrencies, even DOGE’s co-creator Billy Markus said getting to a dollar isn’t success.
Silbert seemingly argued that DOGE getting close to $1 is a clear sign of it being in a bubble, even though he said he is “truly excited to see what DOGE can become over time,” even if it is not worth $37 billion, which is its current market capitalization.
The Digital Currency Group CEO also predicted a significant crash to the price of Dogecoin, saying the cryptocurrency’s market capitalization will ultimately go back to under $1 billion. That would mean the cryptocurrency’s price will drop from its current $0.30 to $0.01.
Silbert also added that DOGE is the “ultimate momentum, gamble trade.”
Per his words, if the “entire value of something comes from a collective belief – and not usefulness or utility – then that thing is overvalued.”
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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