Investors should be aware of the hazards of investing in a crypto asset with no inherent value, such as Dogecoin, according to Kevin O’Leary.
Investing in a meme coin such as Dogecoin is like betting on red or black at a casino, according to Kevin O’Leary, a well-known investor. In a recent interview, he went even further, claiming that it had no intrinsic worth and should be considered pure speculation.
The meme token, which was created in 2013, grew in popularity in 2021 as a result of regular social media engagements by Elon Musk at first, and afterward from other celebrities. However, as its price soared to an all-time high of $0.75, critics warned that it was nothing more than a speculative bubble that would bust soon.
Kevin O’Leary, a Canadian businessman, and author who is perhaps best known as one of the hosts of the reality TV show Shark Tank appears to embrace the second narrative.
He explained the contrasts between Dogecoin and other blockchain initiatives with intrinsic value, such as Etheruem, Solana, and Bitcoin, to CNBC.
He feels that investing is a significant part of a game of speculation, but that there are other components to it. For example, if people invest their money in stocks, they “speculate that the earnings estimates will be met.”
He said, “When you speculate on something like Dogecoin – that’s no different than going to Las Vegas and putting your money on red or black – it’s a pure speculation.”
He also described it as “entertainment” as DOGE has “no inherent value other than what people want to do as they speculate.” As such, he came to the conclusion that neither he nor his team owns any part of the meme coin.
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