- Dogecoin was created as a joke, and it should have remained so, Cardano founder Charles Hoskinson has stated in an attack on the ‘meme’ cryptocurrency.
- Hoskinson urged anyone who has invested in Doge to “take your money and run before it blows up,” stating that it’s price surge is unsustainable.
Doge Bubble Edition https://t.co/CECmL2CThB
— Charles Hoskinson (@IOHK_Charles) April 16, 2021
Hoskinson said that Doge has been around a long time – he remembers people in the industry joking about it back in 2014. It has always been “a pet rock,” just something light-hearted to joke about. It has never been taken seriously, until now.
Recently, due principally to the efforts of Elon Musk, as well as some clever whales, Doge has gone stratospheric. Many people are rejoicing at this, and Elon seems to really enjoy it, but “Let’s be very clear—this is a bubble,” warns Charles.
The price of Doge is not sustainable. It’s going to collapse, and a massive amount of retail money is going to be lost very quickly.
He goes further, saying that this kind of rise is “a mockery of my life’s work.” He emphasized that Doge has no original technology and does not have a dedicated team of developers to support it.
Hoskinson’s warning comes at a time when the Dogecoin price is soaring. The cryptocurrency has gained almost tripled in the past 24 hours and is now the fifth-largest in the market. In the past week, it has gained 490%.
Exit when you still can!
My warning to anybody who will listen is: Don’t buy Doge! Get out of Doge! If you’ve made money, great–Get the Hell out of it!!
He concludes his heartfelt video with a warning to others in the industry to stand up to this kind of market manipulation. “If we continue doing these things, we will be regulated to a point where we no longer have freedom and autonomy, and we’re no better than the banks.”
Hoskinson says that he and others developing 3rd-generation cryptocurrencies will continue working each day, even though they will be left cleaning up the mess, and even though the popping of the Doge bubble could set off another crypto winter.
I’m just sad and sorry for all the people that are going to lose money, and I’m sad and sorry for all the people in our industry who are delighting from this event, knowing full well what it’s going to do.
The greater fool theory
Hoskinson is not alone in his criticism of Dogecoin. Many other leaders within crypto have called out the meme token, especially for its wild price swings. However, Dogecoin has also received a lot of love from other influential personalities as well, including Binance founder Changpeng Zhao and Tesla CEO Elon Musk.
$DOGE 🐕🦺was created to be "a payment system that is instant, fun, and free from traditional banking fees." – Wiki
It is also probably the most successful and measurable joke in human history, currently at $2+ billion USD market cap.
This is only possible in #crypto. Freedom.
— CZ 🔶 Binance (@cz_binance) January 28, 2021
David Kimberley, an analyst with stock trading app Freetrade, explained why Dogecoin keeps on soaring despite everyone knowing it’s a joke cryptocurrency.
Dogecoin’s rise is a classic example of greater fool theory at play, Dogecoin investors are basically betting they’ll be able to cash out by selling to the next person wanting to invest. People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up and then they can sell off and make a quick buck.