Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Cardano Leader Calls Dogecoin Bubble Dangerous

By Crypto BriefingCryptocurrencyApr 18, 2021 01:36AM ET
www.investing.com/analysis/cardano-leader-calls-dogecoin-bubble-dangerous-200573670
Cardano Leader Calls Dogecoin Bubble Dangerous
By Crypto Briefing   |  Apr 18, 2021 01:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Charles Hoskinson says Dogecoin prices could collapse, causing regulatory fallout for the crypto industry.

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 various 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.”

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 (XTC) 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.

Original Post

Cardano Leader Calls Dogecoin Bubble Dangerous
 

Related Articles

Crypto Briefing
Ethereum Sets A New All-Time High Above $3,500 By Crypto Briefing - May 05, 2021

ETH’s price rally continues, and it might be because institutions are buying.Key Takeaways Ethereum’s ETH currency has crossed $3,500 for the first time. ETH has been...

Cardano Leader Calls Dogecoin Bubble Dangerous

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email