- Twitter’s Jack Dorsey recent comments suggest that less-than-a-year-old HamsterCoin is a bigger threat to Ethereum than Dogecoin.
- HamsterCoin is a meme-coin with no unique use-case and technological advantage.
Ethereum is currently working on upgrades to top up the already adopted projects on its smart contracts which include Non-fungible Tokens (NFT), Decentralized Finance (Defi), etc. Despite the platform being backed by problem-solving technological innovations, some prominent names in the industry surprisingly think meme-coins are more of a threat to it than other smart contract platforms.
HamsterCoin ? > https://t.co/EsysB6xM7x
— jack (@jack) June 30, 2021
This comes as a surprise as HamsterCoin appears as another meme-coin built on the Binance Smart Chain. Just like any other meme coin, it has no technological breakthrough and no unique use-case. HamsterCoin claims to provide its users with financial freedom. It was launched in the first quarter of 2021 with a maximum and circulating supply of 10,000,000,000,000,000. The meme-coin does not support smart contracts and has no security of decentralization which is the hall-mark of Ethereum.
Dogecoin better than Ethereum?
Though Dorsey’s tweet is believed to be a joke, its price has surged by over 100 percent as new investors accumulate the token. Jack’s comment mirrors Tesla CEO Elon Musk’s tweet which mentioned that Ethereum co-founder Vitalik Buterin is afraid of Dogecoin. This comment came after Buterin shredded Musk’s idea of scaling Dogecoin more than 10 times.
Musk has firmly held onto the idea that Dogecoin has the potential to win against Ethereum once its block size and the block time are increased by 10 times, while its fees are dropped by 100 times. This was also captured in the proposal published by Doge developer Patrick Lodder.
This proposal to all dogecoin stakeholders suggests to reduce average fees 100x for standard transactions on the Dogecoin chain, split full control over all aspects of fees between miners and node operators, rely less on core development, and bring back a functional (small) free transaction space that incentivizes keeping the network healthy.
Dorsey, however, argues that the sharp increase in scalability will affect decentralization, explaining why the Ethereum 2.0 upgrade is taking time to be implemented. Soon after the heated exchange, Dorsey revealed that he is a Dogecoin investor, and made 8,000 percent profit from it.