CNBC’s Jim Kramer Warn Investors to be Careful of Dogecoin

Dogecoin is the world’s leading meme coin and has gained the affection of popular figures such as Elon Musk and Mark Cuban.

Kramer Says Dogecoin is a Security

Jim Kramer, the one-time hedge fund manager and long-time host of CNBC’s “Mad Money,” has warned investors that they should be careful of Dogecoin. According to Kramer, Dogecoin is a security.

A security is a fungible and tradable financial instrument used to raise capital in public and private markets.

please be careful with Dogecoin…It is a security. It will be regulated. We will find out how many there are and how many are being created each day to make money for the exchanges.

— Jim Cramer (@jimcramer) January 20, 2022

Kramer’s tweet sparked a debate within the cryptocurrency community, with many arguing that Dogecoin is not a security. The United States Securities and Exchange Commission (SEC) is yet to talk about DOGE being a security.

Kramer is one of the leading TV personalities that talk about financial assets. Over the past few years, he has talked about cryptocurrencies and given numerous pieces of advice on how investors can approach the market.

In October last year, Kramer said it is okay to speculate on cryptocurrencies as long as the investors know the risks involved.

He said, “As long as you recognize the very real possibility that the whole investment case for crypto rests on the greater fool theory, you’ve got my blessing to speculate on it.”

Kramer has always maintained that cryptocurrencies are speculative investments. However, he has always advised investors to put some of their investments in cryptocurrencies.

Kramer said, “I know a lot of people say ridiculous things about crypto—and I’ve caught a lot of flack for acknowledging that—but at the end of the day, I’ve said repeatedly that you can use bitcoin or Ethereum as a hedge against inflation. Up to 5% of your savings, as a replacement for gold.”

US SEC Considers XRP as a Security

The United States SEC filed a lawsuit against blockchain company Ripple in 2020, alleging that it issued and sold XRP tokens as unregistered securities.

The SEC vs. XRP case has been going on for more than a year now and the regulatory agency is yet to prove in a court that XRP is a security.

DOGE has been underperforming since the start of the year as the bearish trend in the cryptocurrency market continues. At press time, DOGE is down by 8% in the last 24 hours and is currently trading at $0.1534