Cardano Leader Calls Dogecoin Bubble Dangerous

Key Takeaways

  • Cardano leader Charles Hoskinson has warned that Dogecoin’s recent market rally could have a negative outcome.
  • He suggests that the Dogecoin bubble could attract attention from lawmakers and regulators if and when it bursts.
  • Hoskinson even promoted Cardano competitors such as Ethereum 2.0 and Algorand as strong alternatives to Dogecoin.

Charles Hoskinson, creator of Cardano and CEO of IOHK, has criticized Dogecoin’s rapidly rising market value.

Hoskinson Says Prices Are Unsustainable

Continuing on from its recent price performance, Dogecoin has seen a 124% price gain over the past 24 hours. That prompted Charles Hoskinson to comment on the coin’s success.

“DOGE has always been for our industry kind of a an inside joke, a pet rock, a fun mocking cryptocurrency, and a light-hearted thing,” Hoskinson stated in a YouTube video.

He noted that Dogecoin’s price rally has largely been driven by Elon Musk’s promotion of the coin on Twitter. He added that the coin’s growth has also been driven by “market manipulation by clever whales,” possibly referring to /r/WallStreetBets, a Reddit community that has organized investment campaigns.

Hoskinson argued that Dogecoin’s growth is not sustainable. He noted that Dogecoin does not have a stable development team, that the coin’s code is largely based on Bitcoin, and that the coin is not well-equipped to deal with security issues if one should arise.

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, it’s not real, there’s nothing sustainable there,” he stated.

Regulatory Fallout Is Possible

Furthermore, Hoskinson suggested that the Dogecoin bubble could mean long-term fallout for the crypto industry.

He believes that once the Dogecoin bubble bursts, there will be regulatory inquiries from bodies such as the SEC and U.S. Congress. “There will be all kinds of regulators running around saying this is proof that crypto can’t control itself,” Hoskinson speculated.

Hoskinson suggested that if this trend continues, the cryptocurrency industry will be regulated to the degree that blockchain projects will be required to get approvals similar to bank charters. Hoskinson explained: “It will be an invitation-only club controlled from the top down, and any freedom that we have managed to pull back from the legacy financial system will be lost.”

He added that, even before the bubble bursts, overly high market values could attract lawmakers and international 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,” he said.

Not Just Promoting Cardano

Hoskinson’s criticisms of Dogecoin are natural given that he leads development on his own competing blockchain, Cardano.

However, Hoskinson did not merely promote his own coin as an alternative. Additionally, he called other projects sustainable, including Algorand, Tezos, Avalanche, and Ethereum 2.0. Hoskinson noted that each has “large teams, capital and accountability.”

It remains to be seen whether Hoskinson’s worst fears will come true. Though crypto regulations are becoming increasingly harsh, many new crypto projects continue to flourish.

Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article