Crypto conglomerate Digital Currency Group (DCG) founder Barry Silbert did not hold back in airing his sentiments about the 2013 meme cryptocurrency dogecoin, saying it is ridiculously overvalued.
A Twitter user named Shibetoshi Nakamoto posted, “What do you consider utility? Adoption? People using it as currency? It’s growing there.” Silbert responded to the question by saying he is excited to see what dogecoin can become over time.
“It certainly is not going away and has one of the most passionate communities. But it is not worth $37 billion. Sorry,” he added.
That being said, the crypto community is split on its legitimacy. Despite being up 6,000% on a year-to-date basis, it is lacking in fundamentals and has an ill-defined use case and thus still belongs to the so-called “shitcoin camp,” as some pundits would say.
Building a use case for dogecoin
Billionaires Elon Musk and Mark Cuban have already started pushing the idea of using dogecoin as a form of payment. In fact, the latter started accepting the meme coin on his NBA team Dallas Mavericks.
The joke crypto was utilized as a tipping method to compensate and show appreciation for creators and social media posters. But given its tremendous growth highlighted by its market capitalization hitting $93 billion, experts and cryptocurrency players moved to look for a more solid use case for it.
Musk, Tesla Inc founder and the self-proclaimed “Dogefather,” said he has been in touch with dogecoin developers to make the token faster for regular payments.
Still seeing red
After breaching the $0.70 mark, dogecoin has been on a steady decline, still seeing red on its charts following the recent market crash.
According to CoinGecko tracking, at press time, the digital currency is trading $0.328, losing almost 10% in value for the past seven days. Its recent slump also made it fall to 7th place of the largest cryptocurrencies by market capitalization, valued at more than $42.6 billion.
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