Dogecoin DOGE/USD co-creator Billy Markus has warned against investing in new cryptocurrencies that are “being made every minute” on the Binance Smart Chain (BSC) and Ethereum ETH/USD ecosystems.
What Happened: Markus, who goes by the name Shibetoshi Nakamoto on Twitter, said that there is no enough new money going around to support the new tokens.
The Dogecoin co-creator also cautioned investors against "accidentally" pumping a BSC token.
See Also: Tether (USDT) And Binance Coin (BNB) Are Likely Targets For SEC Lawsuit, Says Crypto Legal Expert
Why It Matters: Markus’ comments assume significance as hundreds of new coins based on the Ethereum as well as the BSC blockchains have easily been created in recent times. BSC is cryptocurrency exchange Binance's own blockchain network. It takes just minutes to create a new cryptocurrency.
This includes the creation of several Dogecoin imitators. Dogecoin is itself an “altcoin,” as cryptocurrencies besides apex cryptocurrency Bitcoin BTC/USD are often referred to.
It was reported in May that a TikToker known as Dre created the Simple Cool Automatic Money SCAM/USD token as a joke and saw it gain a market cap of $70 million within an hour since the launch. Dre had highlighted the ease of deployment on the Binance Smart Chain.
A tweet by CEO Elon Musk on Thursday led to a surge in the price of Baby Doge Coin BABYDOGE/USD, a new crypto currency inspired by the Dogecoin fandom.
Musk’s announcement last week that he was naming his pet Shiba Inu dog “Floki” sent the prices of Shiba Inu SHIB/USD, Floki FLOKI/USD and other dog-themed coins skyrocketing. Both Floki and Baby Doge Coin are based on the BSC ecosystem.
Price Action: Dogecoin is down 0.9% during the last 24 hours, trading at $0.2413 at press time.
Photo by BeatingBetting on Flickr
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