Barry Silbert, the CEO of Digital Currency Group, says that he believes Dogecoin (DOGE) has staying power.
Silbert, once dubbed as the “crypto king” by CNBC, tells his 522,000 followers in a new tweet that he looks forward to the evolution of the meme cryptocurrency.
“I’m truly excited to see what DOGE can become over time. It certainly is not going away and has one of the most passionate communities.”
However, the head of the crypto-focused venture capital firm highlights that Dogecoin, which currently ranks as the seventh-largest crypto asset, is trading above its fair value.
“It is not worth $37 billion. Sorry…
If the entire value of something comes from a collective belief – and not usefulness or utility – then [DOGE] is overvalued. There’s another name for that, but I’m not going there as I know it wasn’t created for that purpose or why most people loved it early on (like me).”
Although Silbert believes that Dogecoin’s fundamentals do not justify the coin’s value, he says he will change his mind if DOGE’s utility can grow along with its investors’ collective belief.
“Bitcoin has both (utility and collective belief). DOGE does not. prove me wrong and I’ll be a buyer.”
At time of writing, DOGE is up 13% in the last 24 hours with a market cap of $43 billion, according to CoinGecko.
Digital Currency Group’s investment portfolio includes crypto exchanges like Coinbase and Kraken, digital asset manager giant Grayscale, and top Bitcoin developer Blockstream.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Oleinik Iuliia