Cardano’s innovator and current CEO of IOHK, Charles Hoskinson, believes Dogecoin rates could crash, triggering regulatory repercussions for the cryptocurrency community. He believes that whenever the Dogecoin bubble explodes, politicians, as well as regulators, will take notice and that this is very likely to have an adverse effect on the industry as a whole.
Price is not sustainable; ‘DOGE has always been a bit of a joke’, says Hoskinson
Extending its latest price success, Dogecoin has gained 124% in the last 24 hours. As a result, Charles Hoskinson commented on the coin’s popularity. “DOGE was always for our industry sort of an inside joke, a bit like a pet, or a cryptocurrency that we would openly mock, and just a kind of light-hearted thing that was never meant to be taken too seriously,” Hoskinson had proclaimed in a video on YouTube.
Hoskinson further pointed out that Elon Musk’s Twitter marketing of Dogecoin has been a major driver of the coin’s price rise. He went on to say that the coin’s rise has also been fuelled by “price bullying by cunning whales,” likely linked to the Reddit forum /r/WallStreetBets, which has orchestrated different investment and financial campaigns.
Hoskinson concluded that the rise of Dogecoin is unsustainable. He mentioned that Dogecoin lacks a cohesive development team, also that this altcoin’s software is heavily dependent on Bitcoin, and finally that the token is unlikely to be able to cope with various security problems if they do occur.
Hoskinson also urged buyers to liquidate their DOGE holdings. “If you’ve profited, that’s fantastic. Just get the heck out of there! This is a bubble, it’s not genuine, and there is nothing permanent about it,” he said.
DOGE bubble burst could lead to fallout
Moreover, Hoskinson speculated that perhaps the Dogecoin bubble might, in fact, have long-term consequences for the cryptocurrency business. He assumes that after the Dogecoin bubble explodes, enforcement agencies, including the SEC as well as the United States Congress, will conduct investigations. “All types of regulators and authorities will be rushing around thinking this is evidence that cryptocurrency will not be able to regulate itself,” Hoskinson predicted.
Some have criticised him for ridiculing DOGE in an effort to promote Cardano, but Hoskinson insists that he is not merely promoting his coin as an alternative and that there is more to it than that. Additionally, he called other projects sustainable and inclusive of accountability and capital, including Ethereum 2.0, Avalanche, Tezos, as well as Algorand.
As of now, time will only tell whether what Hoskinson believes about DOGE will come true or not.