- Digital Currency Group Founder and Chairman Barry Silbert said that nearly all cryptocurrencies are overpriced on social media Monday
- He expects the hot meme cryptocurrency’s market capitalization to drop below $1 billion
- Grayscale Investments, a subsidiary of Silbert’s Digital Currency Group, manages cryptocurrency assets
On social media on Monday, Digital Currency Group founder and CEO Barry Silbert stated that almost all cryptocurrencies are too expensive. Silbert made his comments in response to a tweet from Bloomberg’s Joe Weisenthal, who wondered if cryptocurrencies were overpriced or if they were just a bunch of shitcoins that have nothing to do with where they are? Silbert said 99 percent is too expensive. Last month, Silbert revealed that he had taken a short position in Dogecoin (DOGE), and that he expects the popular meme cryptocurrency to fall below $1 billion in market capitalization this month.
The Dogecoin price, like the rest of the cryptocurrency market, is currently in the green, up 3% to $0.31 after trading in the doldrums over the weekend. With the latest gains, Dogecoin’s market cap has risen above $40 billion, which one market leader believes is overvalued territory.
The CEO of Digital Currency Group (DCG), Barry Silbert, has a pessimistic outlook for the Dogecoin price. Silbert, like many others in the cryptocurrency community, was hoping for a bottom in the bitcoin price over the weekend, but was disappointed by the continued selling. He believes Dogecoin will be the tell for crypto market capitulation, pointing to its weekend market cap of $37 billion and predicting that it’s going back to sub $1 billion, according to a tweet.
Silbert was attacked by the DOGE community, which was unsurprising. Dogecoin co-founder Billy Markus, whose Twitter handle is Shibetoshi Nakamoto, took aim at the DCG chief after calling the cryptocurrency a gamble trade and suggesting there are other places to earn 10x on your money. Silbert’s statement that he was looking to help people not lose money seemed to irritate the Dogecoin co-founder. Markus, who sold all of his DOGE holdings years ago but still accepts DOGE tips, accused Silbert of being disingenuous, sparking a Twitter war between the two.
In a nutshell, Silbert does not see Dogecoin’s usefulness or utility, claiming that its value is based on collective belief, which is why he believes DOGE is overvalued. Bitcoin, on the other hand, has both of those characteristics, according to Sibert. While Silbert said he would be a buyer if someone could prove him wrong about Dogecoin, Digital Currency Group is unlikely to launch a Dogecoin Trust anytime soon.
Catalysts on the way
Despite the DOGE saga, Dogecoin investors are focused on the cryptocurrency’s future catalysts. The most notable of these is a planned listing on cryptocurrency exchange Coinbase, which CEO Brian Armstrong hinted at during a recent investor call.
Given the exchange’s recent Nasdaq listing and its reach of 56 million users, the listing, which is reportedly planned for the coming weeks, is widely expected to raise Dogecoin’s profile even higher. Coinbase’s listing follows that of Gemini, a rival cryptocurrency exchange, and Robinhood Crypto, a zero-commission trading app.