Cryptocurrencies have taken a hit today due to a high-profile Twitter attack launched by Dogecoin co-creator Jackson Palmer. In a series of tweets, Palmer derided the entire cryptocurrency industry as being controlled by a wealthy cartel, criticizing its ties to the centralized financial system and alleged market manipulation by influencers and media outlets.
This public criticism has sparked a selloff in major cryptocurrencies, with Bitcoin down 3.2%, Ethereum down 4.4%, and Dogecoin suffering the most at 4.6%. The negative sentiments expressed by Palmer have added fuel to the ongoing efforts to impose new regulations on cryptocurrency.
The impact of this has been felt not only in the market but also by regulatory bodies. The IRS has shown determination to crack down on tax evasion related to cryptocurrencies, deploying new data analytic tools and sending letters to suspected non-compliant taxpayers. They also plan to subpoena centralized crypto exchanges for information on noncompliant U.S. taxpayers. The IRS might even require businesses to report directly on cryptocurrency transactions valued at over $10,000.
As a result, crypto investors are being urged to take the IRS warnings seriously and review their tax filings. The falling prices of Bitcoin, Ethereum, and Dogecoin indicate that investors are indeed taking this advice to heart.
It remains to be seen how this attack and the IRS’s actions will impact the cryptocurrency market in the coming days. This event has ignited a contentious debate on the future of cryptocurrencies, with some rallying behind Palmer’s criticisms while others remain committed to the potential of these digital assets.