Charles Hoskinson, the founder of Cardano (ADA), has made it known that he does not support the extremely popular Dogecoin (DOGE). His reasons for making such a comment are due to his opinion that DOGE is simply unsustainable, and if it does continue to rise in popularity, then we could have a catastrophic disaster on our hands, one that could end up disenfranchising potentially countless investors worldwide.
As of the time of this writing, ADA has a price of $1.65, which had resulted from a recent rally. This price is also a 4% increase since yesterday. Cardano (ADA) has a current market capitalization of $52,900,596,483.
DOGE may damage cryptocurrency’s reputation beyond repair
Hoskinson believes that because DOGE has little to no actual technology behind it, it is not a good long-term investment. This would make sense as the altcoin seems to increase or decrease in value depending on the public’s perception of it as well as the social media activities of billionaires such as Mark Cuban and Elon Musk. Hoskinson claims that DOGE could decimate the cryptocurrency industry’s reputation in the long run, and if it does continue to act unsupervised, then we could very well be witnessing even stricter regulations in the near future as well.
The IOHK (Input Output Hong Kong) leader, therefore, argues that people tend to buy DOGE simply because of the hype surrounding it rather than basing their purchases on any sort of practical utility. This would make sense as, after all, DOGE’s value has managed to increase by a whopping 7,000% since January, which has resulted in numerous millionaires being born overnight as well as FOMO for those who did not invest in it. This is dangerous, though, as it could result in a crash that can financially ruin those who are not careful, as a panic sale is bound to occur eventually.
Disaster is imminent
All of this would ultimately lead to the direction of total catastrophic failure as far as DOGE is concerned. The reason for this is because individuals are bound to have expectations that are very unrealistic and unpractical in nature. When we combine this kind of attitude with the lack of any kind of real-world experience when it does come to cryptocurrencies and how they tend to operate, then a disaster is bound to take place sooner rather than later.
Perhaps what is most dangerous is the fact that once the DOGE crash occurs, people may use this as an excuse to vilify the entire crypto industry, which could have disastrous results for the altcoins that are actually trying to improve the financial landscape through the use of blockchain technology and DeFi (decentralized finance).