Dogecoin’s strong increase in price over the past few days has surprised the cryptocurrency market. In particular, not only the Founder and CEO of Digital Currency Group, the parental company of Grayscale, Barry Silbert, felt that this was a typical Elon Musk pump, but Charles Hoskinson, the founder of Cardano, also criticized Dogecoin. This is also a story easy to understand by Dogecoin – with an attempt to do nothing has taken Cardano’s place on the rankings.
Cardano leader Charles Hoskinson has warned that Dogecoin’s recent market rally could have a negative outcome
Dogecoin has increased in price by 124% in the past 24 hours. That prompted Charles Hoskinson to say:
“DOGE has always been for our industry kind of an inside joke, a pet rock, a fun mocking cryptocurrency, and a light-hearted thing.”
Obviously, Dogecoin’s bull run was largely driven by Elon Musk’s promotion of the coin on Twitter. Furthermore, the coin’s growth was also fueled by market manipulation by whales, perhaps to mention / r / WallStreetBets, a Reddit community that has hosted various investment campaigns.
Dogecoin’s growth is unsustainable, Hoskinson argues. He noted that Dogecoin does not have a stable development team, the coin’s code is largely based on Bitcoin, and the coin is not well equipped to deal with security issues if any.
Hoskinson even encouraged investors to sell their DOGE:
“If you’ve made money, great, but get the hell out of it! It’s a bubble, not really, there’s nothing sustainable there.”
Furthermore, Hoskinson suggests that the Dogecoin bubble could mean a long-term failure for the crypto industry. He believes that once the Dogecoin bubble bursts, there will be regulatory requirements from agencies like the SEC and the US Congress.
“There will be all kinds of regulators running around saying this is proof that crypto can control itself.”
If this trend continues, the crypto industry will be adjusted to the extent that blockchain projects will be required to obtain the same approval as the banking charter. Even before the bubble burst, too high a market value could attract international lawmakers and regulators.
“If this is the gateway for retail investors to enter our ecosystem… at some point it’s going to hurt each and every one of us.”
Hoskinson’s criticism of Dogecoin is understandable because Cardano is truly a serious and professional team. Cardano prices also seldom need to be pumped, but grow in a completely natural way. Therefore, it is natural for Cardano to appear in the top 10 of CoinMarketCap, but look, DOGE does not take a bit of effort, of course, quickly entered the top 10. There is a possibility that DOGE will always occupy ADA’s position on the rankings.
Hoskinson, though, isn’t just advertising the ADA. He still calls other projects sustainable, including Algorand, Tezos, Avalanche, and Ethereum 2.0 – each with a large team, capital, and accountability.
It remains to be seen whether Hoskinson’s worst fears come true. Although regulations on cryptocurrencies are becoming harsher and harsher, many new crypto projects continue to grow.
- After Launching Smart Contracts And Fully Embracing Decentralization, Cardano Foundation Has Set Up Its Cardano Registry
- A New Algorithmic Stablecoin Called AgeUSD Will Be Launched On The Cardano Blockchain Making It A First For The Network