The creator of Dogecoin has said the meme-based cryptocurrency is a scam — to help the wealthy.

Is Dogecoin a scam?

Dogecoin co-creator Jackson Palmer recently tweeted a statement that slammed cryptocurrency altogether, saying the alternative form of currency is a scam meant to amplify the wealthy.

  • “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,” he tweeted Wednesday.
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Palmer tweeted that cryptocurrency often suggests crypto is an alternative form of currency compared to big banks and traditional forms. But, he said, all money has a singular problem — rich people.

  • He said cryptocurrencies are often controlled by “a powerful cartel of wealthy figures” who often control the markets to help those at the very top. Essentially, the rich still benefit from the cryptocurrency investments, he said.

Are cryptocurrencies down?

Per CNBC, cryptocurrency trading volume has dropped significantly in recent days. Interest in crypto has fallen off because of the decline of Bitcoin, one of the major cryptocurrencies out there. This comes after there was so much hype around cryptocurrency in April and May, with investors hoping to send the currencies “to the moon,” according to Gizmodo.

China’s recent stance against cryptocurrency has also impacted the market, experts told CNBC.

  • “The Chinese crackdown has caused a lot of fear, which is showing up in markets,” said Teddy Vallee, chief investment officer at Pervalle Global, according to CNBC. “The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring. Typically when you have large sell-offs, participants are quite fearful and pull back their chips.”