Cardano founder Charles Hoskinson is sounding off on the Dogecoin (DOGE) mania, as the meme cryptocurrency skyrockets into the top seven crypto assets by market cap.
This week Doge has been on a tear, increasing in price by 522% in just the past seven days and 118% in the past twenty-four hours.
The asset has rallied 10,650% on the year from $0.004 in January to an all-time high of $0.43 and has entered the mainstream, garnering attention and support from Tesla CEO Elon Musk and billionaire entrepreneur Mark Cuban.
Although Dogecoin entered the crypto world as a joke, Hoskinson warns that as the asset’s price takes off into the stratosphere, a bubble is no doubt forming that will cause many individuals to lose an alarming amount of money very quickly.
“DOGE has always been, for our industry, kind of an inside joke, a pet rock, a fun, light-hearted thing. It just seems to always be around, but [is] something, for the most part, we have never taken seriously.
Recently, due to the efforts of Elon Musk principally and market manipulation by clever whales, Doge has become stratospheric and has become a haven for new entrants into the cryptocurrency space.
Let’s be very clear – this is a bubble. 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.”
Hoskinson further predicts that when that bubble bursts, it will act as an invitation to regulators across the board to enter the space and more closely monitor the way in which the crypto industry operates.
“My thought is that after that bubble bursts it will be a catalyst for regulators and lawmakers to get involved in our industry and hurt the entire industry. It’s not a good event, and by no means is this sustainable.
You know, when you look at the third generation of cryptocurrencies, the Algorands (ALGO), the Tezos (XTZ), the Avalanches (AVAX), the Cardanos (ADA)… these projects have large teams, capital and accountability. They have the aspirations or reality of use and utility… DOGE does not have a stable development team. There is no original tech in DOGE. It’s a copy of Bitcoin…
After the bubble bursts, which it will, there’s going to be congressional inquiries. There’s going to be the U.S. Securities and Exchange Commission (SEC) running around. There’s going to be all kinds of regulators running around saying, ‘This is proof that crypto can’t control itself and we need to come in and save you.’”
Cuban this week provided a very different take on DOGE’s rise to stardom, remarking that it offers investors an opportunity to enter and learn about the crypto market and provides a better chance to earn money than the lottery. Cuban’s own Dallas Mavericks accepts DOGE as payment for tickets and merchandise and have recently stated that they will “never sell one single DOGE ever.”
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Featured Image: Shutterstock/McQueen Tirkey