- Spencer Bogart, a partner at VC firm Blockchain Capital has called out Dogecoin as a meme coin with no users, despite the price rally.
- He also talked about the factors behind Ethereum’s recent rally, stating that its fundamentals are very strong and its rally is justified.
Dogecoin has been this year’s coin to watch, with its price setting new all-time highs every other week. Despite the impressive performance, several leaders in the crypto space have called it out for lacking utility. The latest is Spencer Bogart, a partner at Blockchain Capital, a VC firm focusing on crypto and blockchain. He stated in a recent interview that despite Elon Musk’s endorsement, Dogecoin still has no users.
Bogart, who is renowned as one of the first people on Wall Street to recognize, and document the value of blockchain, appeared in an interview on Bloomberg. He discussed what’s driving Dogecoin’s rally, Ethereum’s recent price surge and what the future holds for cryptos.
WATCH: @CremeDeLaCrypto, general partner at Blockchain Capital, calls #Dogecoin a ‘meme coin’ and says @elonmusk likes it because “he likes jokes.”
He also discusses #Ethereum‘s 1,500% rally in the past year and where cryptocurrencies are heading. Via @BloombergTV $DOGE $ETH pic.twitter.com/q9tZDnxUv2
— Bloomberg Crypto (@crypto) May 4, 2021
On what is driving the price of Dogecoin, Bogart told Bloomberg:
It’s anybody’s guess what is driving this specific price action.
He believes that Elon Musk’s appearance on Saturday Night Live (SNL) on May 8 has also influenced the rally. Dogecoin is now up 30 percent in the past 24 hours and is currently trading at $0.637. With a market cap of $81 billion, it’s now bigger than FedEx, General Motors, Dell and even Coinbase.
Like GameStop, but worse
Bogart added:
It’s a meme coin. It’s a functional network, I’ll give it that credit, that it does work. But there’s no real users, there’s no developers building on it. I’ve never taken an investment pitch of someone actually building on top of Doge. This is very analogous to the GameStop saga, except with the caveat that GameStop had a little bit more going on for it.
There’s no speaking about Dogecoin without mentioning Elon Musk. According to Bogart, despite the public support, Doge is just a practical joke for Musk.
“He likes jokes. He’s a fun guy and he likes memes, and Doge is the perfect target for it. And in the current market environment I’m not surprised that it’s caught the eye of more than one market participant,” he stated.
Ethereum is the Amazon to Dogecoin’s GameStop
While he had no kind words for Doge, Bogart was full of praise and admiration for Ethereum. He believes that in crypto, the easiest way to judge a project is by its fundamentals.
If we think of Doge as GameStop, then we can think of Ethereum as closer to an Amazon of crypto finance. Whereas Ethereum has seen a ton of fundamental traction and adoption, and a lot of developers building on it, Doge just doesn’t quite have that. That’s where we separate the wheat from the chaff.
He pointed to recent improvements to the Ethereum protocol as some of the key price drivers. They include the upcoming EIP-1559 which will boot out the miners and greatly reduce the fees. The proposal will also make Ether a deflationary currency. Ethereum 2.0 is also highly anticipated. However, the primary price driver is DeFi, he believes.
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