Dogecoin has gained massive popularity in recent years, thanks to its meme-like branding and its celebrity endorsements, particularly from Elon Musk, the CEO of Tesla and SpaceX. The meme coin has also achieved significant market capitalization, making it one of the largest cryptocurrencies in the world. In a recent interview with FOX Business, Marshall Hyner, a Dogecoin Foundation board directions member, shared his insights into why the meme coin cannot be classified as a security and why it has the potential to become one of the top three cryptocurrencies in the future.
Why Dogecoin is not a Security?
According to Hyner, dogecoin cannot be classified as a security under the Securities Exchange Act since it does not meet the criteria of being a financial asset with future expectations of gains and a centralized entity like Howie. In other words, dogecoin is more like bitcoin and other cryptocurrencies, classified as commodities by regulators like the United States Commodity Futures Trading Commission (CFTC). Hyner’s argument is that dogecoin, like other cryptocurrencies, does not have a centralized entity controlling it, nor does it have any expectations of future gains since it is a decentralized digital currency.
Hyner also stated that he disagreed with how the SEC has handled enforcement, and instead, he suggested that they develop procedures to guarantee the monitoring and continuation of projects. This argument is significant since the SEC has been cracking down on cryptocurrencies that it considers securities, such as Ripple (XRP) and Telegram’s Gram token, which were both sued by the SEC for raising funds through unregistered securities offerings.
The Unstoppable Meme Coin
Hyner believes that dogecoin’s meme-like branding and community-driven nature make it an unstoppable force in cryptocurrency. He stated that the development team did not expect DOGE to become one of the ten largest cryptocurrencies, but since the meme “cannot be stopped,” he now thinks the coin has a shot at the top three.
The memetic power of this coin has been evident in recent years, with the coin gaining massive popularity on social media platforms like Twitter and Reddit. Dogecoin’s community-driven nature has also been crucial to its success, with its users actively promoting the coin and even using it for charitable causes.
Musk’s tweets do not always lead to a sustained increase in the price of dogecoin, they have undoubtedly played a role in bringing more attention to the meme coin. This is evident in the aftermath of Musk’s appearance on Saturday Night Live, where he referred to dogecoin as a “hustle.” This caused the price of dogecoin to drop significantly, but it has since recovered.
Despite the criticisms and skepticism surrounding dogecoin, its popularity and market capitalization cannot be ignored. The meme coin has proven to be a resilient force in the cryptocurrency world, defying expectations and gaining a massive following.
Conclusion
Dogecoin’s rise to popularity is a testament to the power of community-driven marketing and the influence of social media. Its meme-like branding and simplicity have made it more accessible to a broader audience, which has contributed to its success. Despite criticisms and skepticism, the meme coin has defied expectations and achieved significant market capitalization, making it one of the largest cryptocurrencies in the world.
