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Bitcoin and other cryptocurrencies such as Ripple and ethereum are having “dumb money” thrown at them by investors who are afraid of missing out on the digital currency mania, the co-creator of joke cryptocurrency Dogecoin. Speaking to Bloomberg, Jackson Palmer, said: “I think it’s not something we didn’t expect. “I think whenever you see a huge exponential rise in the price of something overnight with very little technical development or announcements coming out, it can be a sign of a bubble. “You can expect a correction in any market that happens so I think that’s what we’ve been seeing a lot lately.”

BLOOMBERG•GETTY Bitcoin and the cryptocurrency craze has taken hold, Palmer said

What’s happening is people are having this ‘FOMO’, this fear of missing out, they’re throwing a large sum of money into something Jackson Palmer

Mr Palmer warned that investors are doing enough research into cryptocurrencies before jumping on the bitcoin bandwagon. He said: “We’ve been seeing of what I call kind of blind investing. “What’s happening is people are having this ‘FOMO’, this fear of missing out, they’re throwing a large sum of money into something and they’re not doing the due diligence until after the fact. Dogecoin started as a joke, based on grammatically-challenged shiba inu memes, poking fun at the rise of cryptocurrencies in 2013 but now has a market cap of $2 billion.

Asked about what he made of the cryptocurrencies meteoric increase in price, Palmer said that it just showed how ridiculous the bitcoin mania was. He said: “Not really, like I haven’t really been involved closely with Dogecoin for a couple of years now. “Mostly because it started as a joke and I think it’s important that it says that way. “For me now I really think it’s about kind of my barometer for how much bitcoin and crypto mania has kind of taken hold and how much kind of dumb money is flowing into this space.”