“The bigger this bubble goes, the bigger negative connotation it’s going to have….It’s going to be like the dot-com bust, but on a much more epic scale.”
Dogecoin creator Jackson Palmer weighed in on the cryptocurrency bubble debate, stating that he believes the markets are in a bubble and that the eventual pop will make people less likely to embrace the underlying cryptocurrency and blockchain technology.
Palmer told the New York Times that he sees parallels between the crypto finance industry–initial coin offerings in particular–and the dot-com bust, when Internet companies achieved market caps in the hundreds of millions of dollars despite not having clear business models, eventually leading to a stock market crash.
He is confident the same fate awaits the cryptocurrency markets. As he warns:
People are treating cryptocurrency now like penny stocks….It’s become a securities market.