Director of research at D.A. Davidson Gil Luria comments on the state of crypto and Dogecoin nose dive.
Tesla CEO Elon Musk took center stage this weekend as host of “Saturday Night Live,” where his joke calling Dogecoin a “hustle” caused the cryptocurrency to take a market nosedive.
Some investors dispute Musk’s remarks as just a gag, but director of research at D.A. Davidson Gil Luria told “The Claman Countdown” on Monday that Dogecoin most certainly is a hustle.
“I think in the sense of the Elon Musk sketch, yes, it’s a hustle,” he said. “It’s some people promoting it and eventually it’ll be at other people’s expense. And in that sense, yes, it’s a hustle.”
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In terms of monetary benefit, a hustle is typically defined as one person or group manipulating the trade of funds. Even though crypto as a whole is an unregulated form of currency, Luria explained that people knowingly buying into Dogecoin with no tangible value is in itself a farce.
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“Some people are promoting it knowing that there’s nothing there and other people are buying it,” he said. “I don’t know if it’s a well-organized hustle but there’s clearly people that are making money on this joke and there will be people that lose money on this joke.”
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Dogecoin first originated from an internet meme in 2013 poking fun at digital currencies. The coin hit its all-time high at $0.74 last week, only to take a major dip down to $0.43 after Saturday night’s comedy show.
Luria said he’s banking on Bitcoin and Ethereum to survive the coming years of crypto-mania due to their sense of establishment and value.
“They have a track record of security, a track record of people building around them,” he said. “But that doesn’t mean there won’t be other crypto assets and crypto technologies that will emerge and may even overtake Bitcoin and Ethereum.”
