Dogecoin A 'Victim Of Pump And Dump Scheme' By Elon Musk, Says Analyst

Dogecoin (DOGE) was termed a “bad boy of crypto” by Ric Edelman, founder of Edelman Financial Engines in an interview with Yahoo Finance on Monday.

What Happened: Edelman told interviewers that he is “strongly opposed” to Dogecoin, which he pronounced “Doggy-coin,” because it was “invented as a joke.”

See Also: How To Buy Dogecoin (DOGE)

“It has no legitimate use case. It is not something that I think is doing the crypto community any good in its efforts to generate credibility and legitimacy in the financial marketplace, or approval by the [U.S. Securities and Exchange Commission].”

Edelman said Dogecoin fell into the category of fad or what he said could be argued as fraud, reported Yahoo Finance.

“It's a victim of a pump and dump scheme by certain very famous wealthy individuals who shall be nameless here on the program. Elon Musk,” said Edelman.

DOGE traded 1.14% higher at $0.33 at press time over 24-hours. The Shiba Inu-themed cryptocurrency traded 2.6% lower against Bitcoin (BTC). BTC traded 3.84% higher at $40,395.50 at press time.

Why It Matters: Edelman said in the interview that the SEC “isn’t doing its job by providing the oversight it does to [exchange traded funds],” reported Yahoo Finance.

See Also: Started The Year With $1,000 Bet on Polygon (MATIC), Dogecoin? Your Coins Can Still Fetch A High-End Tesla

“That's creating the environment for people to do crazy things in crazy chat rooms, creating a bump and dump environment of people who are trying to get rich quick.”

The analyst advocated the inclusion of cryptocurrencies in portfolios since they are broadly non-correlated to other major asset classes. He claimed to have invented the 1% asset allocation strategy for Bitcoin.

Bitcoin is picking up steam once again and was up 23.44% on a seven-day basis driven higher by Tesla Inc TSLA CEO Elon Musk’s tweet on Sunday and some other key factors.

Read Next: Shiba Inu Outperforms Dogecoin As Meme Coins See Rekindled Social Media Interest