CNBC's "Mad Money" host - Jim Cramer - has issued a cautionary note to Investors about the popular memecoin Dogecoin. The American sees it as a title that will soon be regulated.
"Please be careful with Dogecoin"
The 66-year-old TV host often changes his stance on the cryptocurrency industry. Last year, he allocated some of his assets in Bitcoin and Ether and even insisted on receiving his salary in the primary cryptocurrency.
A few months later, the Chinese crackdown caused a major price correction in the digital asset market, and Cramer sold off nearly all of his stash of BTC, leaving him primarily exposed to ETH. However, he admitted that he was not an avid supporter of the second largest cryptocurrency and vowed to sell his positions when the asset's price rises.
In a recent tweet, the American revealed that he has no warm feelings about another cryptocurrency - Dogecoin. He warned investors to be careful when dealing with it, as it is not a currency, but a security. It also predicted that US financial regulators would put it under their reach.
This isn't the first time Cramer has touched on regulations in the industry. Last summer, he said he was a big supporter of such a step because otherwise "the cryptocurrency will collapse".
Although Cramer, as well as many other individuals, have opined against memecoin, it has evolved as one of the most popular assets in the crypto space.
His most notable supporters include Tesla CEO - Elon Musk - and Dallas Mavericks owner - Mark Cuban. The former repeatedly praised DOGE's merits on his Twitter account, which affected its USD value. A few days ago, Musk's support went to another level as his giant EV enabled payments with the original memecoin for its products.
In turn, Cuban has allowed NBA fans to purchase match tickets and merchandise in DOGE. He also argued that it is more suitable as a payment method than bitcoin. The latter is a valuable asset, and people want to keep it for the future, while Dogecoin is "easy to spend," concluded the billionaire.
It is worth noting that the Shiba Inu-inspired cryptocurrency also entered the film industry last year. In October, the American cinema chain - AMC Entertainment Holdings - allowed customers to purchase digital gift cards with Dogecoin.