Could a new cryptocurrency crisis arise?

Already weakened and barely recovered from its previous downfall, the crypto may still be having a hard time, according to the co-founder of Dogecoin, who has a very clear opinion about the industry.

An even greater disaster

While investors are still reporting their funds and the cryptosphere is slowly recovering from the crisis, it may not be all over. In fact, a new cryptocurrency could hit in the short term.

At least that’s what Jackson Palmer, the co-creator of Dogecoin, thinks. During an interview with the newspaper Crikey, the entrepreneur revealed his point of view and felt that the world of cryptocurrencies was not yet strong enough to survive another fall properly. Considering the phenomenon as something cyclical, Palmer nevertheless confirms that the risk is present and even necessary! But when that happens again, investors will suffer more.

I think in order to clear the cryptosphere completely, another crash will have to happen. I think we’re late for some kind of “pop” and I do not think it’s going to be a big boom. It will be much more painful, and unfortunately, it is likely to affect minorities and people lower on the socio-economic spectrum when it happens. So when that happens, the people who were fooled, the people who were lured into the viral promotion of cryptocurrency by the Matt Damon ads and put their $ 401,000 pension fund in it, are unfortunately the ones who will be most hurt.

Excerpt from Jackson Palmer’s interview with Crikey

Several phenomena are pushing crypto to a new crisis

But how can such an argument be justified? For Jackson Palmer, the answer is very simple: Despite the crash that rocked the industry, the latter is already falling back to its old ways. Investors are putting their money back into digital assets and recreating a whole new bubble that is exactly the same as the old one. This rapid flow of investment is preventing the implementation of new measures that could stem further losses.

Similarly, the idea of ​​earning a fortune begins to find its way back into the minds of community members. The co-founder of Dogecoin involves the famous Elon Musk, who according to him continues to drown the public with such proposals.

About a year ago, when Musk was talking about crypto, I said Elon Musk was and always will be a scammer, but the world loves scammers. They love the idea that they too could become billionaires one day, and that’s the dream he sells. When he talks to other users on Twitter, they say, “Wow, Elon is talking to me! Maybe I can be his friend or even get rich myself.”

Excerpt from Jackson Palmer’s interview with Crikey

What are the real risks of a relapse?

Jackson Palmer is right: a relapse is always possible. The industry has still not recovered from the crisis, and the global economy, plagued by inflation and socio-political problems, has dozens of reasons to make the cryptosphere fall back (regulation, war, new fiscal policy …). In terms of the impact that a new crash will have on investors, it remains large, but it cannot be assessed accurately.

Another crisis may therefore arise in the short term as the speculation bubble is being rebuilt even though the industry is weakened. Nevertheless, it should not be forgotten that the cryptosphere is changing and that skepticism (even cryptophobia) has taken hold of the majority of investors. Therefore, using cryptocurrencies just to make money is no longer a reality for most enthusiasts. Time will tell whether these weighed enough to make the industry more stable, or whether the profit-seeking “nibblers,” as Jackson Palmer calls them, won the game again and threw it all back into chaos.

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