Dogecoin is a Security and the SEC is Coming for it: Jim Cramer
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Famous CNBC’s Mad Money host, Jim Cramer, warned against investing in Dogecoin (DOGE) on Thursday. The talk host took to Twitter yesterday, urging his 1.7 million followers to “please be careful with Dogecoin,” adding that the meme token “is a security” and “will be regulated.” Cramer also tweeted: “We will find out how many there are and how many are being created each day to make money for the exchanges.”
Cramer’s comments on the cryptocurrency, which also aired on CNBC Thursday, sparked significant attention on Twitter. Many Twitter users disagreed with Cramer’s sentiments, while many others questioned how the TV host concluded that the meme coin is a security. Others also slammed Cramer, asserting that he lacked knowledge of blockchain and DOGE’s supply.
Interestingly, co-creator of Dogecoin Billy Markus also jumped on Cramer’s tweet, arguing:
“Please learn how blockchain works. It’s already well known how many there are and how many are created every day. It is in the public code on the public blockchain, easily viewable by anyone.
In terms of ‘security,’ it is a proof-of-work cryptocurrency so you have to put in work to retrieve the coins from the block. It doesn’t qualify under the Howey Test. It works the same as bitcoin. In fact, it’s 99.5% the same code as bitcoin. Please educate yourself.”
Markus added that Cramer’s caution is “The biggest bull signal ever for Dogecoin.”
Key Dogecoin Levels to Watch — January 21
The crypto market’s bearish woes continued on Friday, as traders woke up to the price of most crypto assets at the floor or near-floor levels. DOGE extended its losses today, shedding over 8% at press time and over 20% in the past seven days. The broader crypto market fared worse as it fell by 11% over the past 24 hours.
On my daily chart, things look grim for DOGE as it approaches its lowest point in 2022 at $0.1371. The path of least resistance currently favors the downside, indicating that we could see more price dumps to the possible bottom of the cycle at $0.1371. As we head into the weekend, I expect to see a quiet tone in the coming days, followed by the clarity of the next possible breakout, likely downwards.
Meanwhile, my resistance levels are $0.1650, $0.1800, and $0.1900, and my support levels are $0.1400, $0.1300, and $0.1200.
Total Market Capitalization: $1.82 trillion
Dogecoin Market Capitalization: $20.2 billion
Dogecoin Dominance: 1.11%
Market Rank: #11
