Jackson Palmer: institutional investors will turn crypto into Wall Street 2.0

The creator of Dogecoin, Jackson Palmer expressed concern about the arrival of institutional investors in the cryptocurrency industry. In his opinion, such a development of events could turn a decentralized ecosystem into "Wall Street 2.0".

"This is why I never understand people getting excited about ETFs, Bakkt, etc. Goodbye to decentralized peer-to-peer cash. Hello to Wall Street 2.0." Palmer tweets.

Palmer also noted that 1% of wallets own more than 55% of all Bitcoins. As a result, the arrival of institutional investors negatively affect decentralization.

"The institutionalization of cryptocurrency will heavily re-centralize both power structures and token distribution. So you can say goodbye to much of the original vision for the technology."

Wall Street and Cryptocurrency

Banks, governments and traditional financial institutions have long criticized blockchains and cryptocurrencies, but over time, they changed their minds and began to take the industry seriously. Bank of America CEO Brian Moynihan told Yahoo Finance at the World Economic Forum in Davos that they have blockchain patents more than anyone else does in the world.

Palmer's comments highlight the growing gap in the cryptocurrency community regarding trust in traditional financial institutions. Many early users of cryptocurrency see digital assets as an alternative to banking products, a competitor, and even a possible successor to Wall Street. In fact, most of the early users came to the cryptocurrency ecosystem precisely because of problems in banking institutions and mistrust towards them.

However, despite this, many investors are calmer if they conduct their activities on regulated exchanges under the flags of well-known institutional platforms that comply with all the rules and do not violate the law.

SOURCE