- Dorsey supported a 2015 suggestion that Coinbase should focus on Bitcoin.
- Twitter boss Elon Musk also joined in to support Dogecoin.
Twitter founder and long-term Bitcoin advocate, Jack Dorsey claimed on Twitter that Ethereum [ETH] is a security and his comments have caused a stir. Dorsey answered “yes” to a question about whether ETH is a security.
Udi Wertheimer, a Bitcoin Ordinals developer who works at Taproot Wizards, called Dorsey a “clown” on the social media platform.
When Dorsey replied, “ETH isn’t security? Teach me wizard, ‘Wertheimer shared a 5 year old video of US SEC Chairman Gary Gensler saying that ETH was now “enough decentralized” and thus no security.
Gabor Gurbacs, strategy advisor to stablecoin issuer Tether, weighed in on Wertheimer’s comment: speculate that Ethereum’s recent move to the proof-of-stake (PoS) mechanism may have reactivated securities laws.
Dorsey too supported a post from 2015 in which Coinbase CEO Brian Armstrong called altcoins a “distraction” and suggested that Coinbase should focus on Bitcoin instead.
Current Twitter boss Elon Musk also joined in, adding that Coinbase should also target Dogecoin in addition to Bitcoin.
“Doge ftw,” Musk tweeted on June 6. The memecoin is known to be the favorite cryptocurrency of the Tesla CEO.
Dorsey maintained his pro-Bitcoin stance on Twitter and shared an old video of Jack Mallers, CEO of Bitcoin Lightning application Strike, criticizing Armstrong for prioritizing altcoins over BTC and the Lightning Network.
Dorsey was in charge of Twitter in 2021 when it launched 140 ETH-based non-fungible tokens (NFTs), but he refused to invest in Ethereum at the time.
SEC’s enforcement action is causing volatile price movements
The online scuffle follows SEC’s latest charges against Binance and Coinbase. The regulator this week charged the exchanges for allegedly offering tokens that are considered unregistered securities.
The price of BTC fell 6.6% to about $25,500 after the SEC enforcement. The King coin was trading above $26,800 after recovering at the time of writing.
The price of ETH fell about 5.4% to about $1,800 after SEC enforcement. At the time of writing, it was trading at USD 1,870.