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 email alerts delivered directly to your inboxFeatured Image: Shutterstock/Oleinik Iuliia