"The Big Short" famed investor, Michael Burry, officially dismissed Dogecoin knockoffs. He warned investors about the Shiba Inu coin being "pointless" and how it would eventually lead to monetary debts.
Burry is an American investor known for betting against iconic stock markets. According to Newsweek, one of his most memorable achievements was accurately predicting the U.S. house market collapse that led to the global financial crisis in 2007 to 2008. While thousands of investors lost money, Burry gained millions.
More recently, Burry warned about a similar price bubble problem with cryptocurrencies.
Michael Burry Calls Dogecoin Knockoffs Pointless
In a now-deleted tweet, Burry ridiculed Dogecoin knockoff Shiba Inu and its investors. He pointed out that the meme coins' supply exceeded a quadrillion coins, making it virtually "pointless."
According to Market Insider, Burry tweeted, "just saying, one quadrillion seconds is about 32 million years. One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless."
To emphasize, Burry said the Shiba Inu price appreciation was impossible because of its vast amounts. Typically, cryptocurrencies gain value based on their circulation limits. This means fewer coins in circulation and high market demand would create price inflation. Burry said this strategy would be "pointless" on the Shiba Inu coin.
Burry specifically described meme coins like Shiba Inu as "driven by speculative fervor to insane heights from which the fall will be dramatic and painful," per Market Insider. Because of its dynamic nature, there is no financial security on its markets, which would also contribute to its price depreciation.
Burry warned meme coin investors to look out for the huge "inevitable" price drop on the markets.
Burry's negative sentiment on cryptocurrencoes also extend to Bitcoin. Burry called Bitcoin a "speculative bubble fueled by huge amounts of leverage." Burry questioned the cryptocurrency's potential in long-term markets and strongly asserted its price inflation would drop sometime soon.
How Accurate Is Michael Burry's Prediction?
While many recognize Burry for his market predictions, it is important to keep in mind that the investor also made mistakes in the past. According to YouTuber FinTek, Burry once called Index Funds overvalued, but its market continues to grow until today.
Burry also lost a bet against Tesla stocks early this year, when he predicted it would sink deeper into debt when in reality, it was already on its path to market recovery.
The key takeaway from Burry's tweet is a critical perspective on meme coins. He pointed out weaknesses that developers have failed to address. However, whether this weakness is enough to break the ongoing markets remains to be seen.
Not entirely separate from the issue, the original meme coin tripled its price in the market last week. However, at the time of writing, CoinDesk recorded Dogecoin at $0.22, with a 4.32 percent decrease in the last 24 hours.