Grayscale CEO, who once shorted Dogecoin, claims: "DOGE's market cap of $37 billion will eventually return to $10 billion."

Barry Silbert, founder of Grayscale's parent company DCG Group, recently stated on Twitter that Dogecoin is not worth its $37 billion market cap, and he expects its market cap to drop significantly to below $10 billion.

Dogecoin's $37 Billion Valuation Questioned

Dogecoin, propelled by endorsements from Tesla CEO Elon Musk, its low price appeal, and its meme-like nature, has attracted significant investor interest this year. Its price has surged, at one point even breaking into the top five cryptocurrencies by market capitalization. Its success has also sparked a trend of dog-themed cryptocurrencies. Dallas Mavericks owner Mark Cuban even boldly predicted that Dogecoin could hit $1 per coin.

However, not everyone is on board with the Dogecoin frenzy, despite a large fan base and holders. Among the skeptics is Barry Silbert, the head of Digital Currency Group (DCG) and Grayscale.

Barry Silbert engaged in a heated exchange on Twitter with Shibetoshi Nakamoto, one of the figures behind Dogecoin. The institutional investor expressed his curiosity about Dogecoin's future development but emphasized that while Dogecoin has a large and strong community, it is not worth its current $37 billion market valuation. Silbert's parting words were not what Dogecoin investors wanted to hear:

"Sorry, but it's not worth $37 billion."

i'm truly excited to see what doge can become over time. it certainly is not going away and has one of the most passionate communities. but it is not worth $37 billion. sorry

— Barry Silbert (@BarrySilbert) May 30, 2021

Barry Silbert also forecasted that Dogecoin's market capitalization would drop below $1 billion. If this prediction materializes, Dogecoin's price could plummet to below $0.01.

Overvaluation Leads to Empty Promises

Barry Silbert had previously publicly announced his intention to short Dogecoin during its peak. According to reports, Silbert commented on Twitter:

"Dogecoin's time has come. We've had a good run. Welcome to the crypto world. But now it's time to convert your Dogecoin to Bitcoin."

It was later revealed that his company had purchased three times leveraged short tokens on the exchange FTX against Dogecoin. The exact position of Silbert's company in terms of long or short is unknown, but since Silbert's tweet, Dogecoin's price has dropped nearly 50%.

Silbert's skepticism towards Dogecoin is not due to dislike for the cryptocurrency but rather the belief that investing in meme coins like Dogecoin is akin to gambling. These coins rely on market hype for price appreciation, leading to overvaluation. Once the momentum wanes, holders quickly shift from Dogecoin to other trending coins.