Charles Hoskinson gave alarming statements about Dogecoin and the future of the crypto market
Charles Hoskinson, CEO of IOHK, has always been vocal about the trends that dominate the cryptocurrency market. In your last podcast, he addresses the Dogecoin community with some clarity about the current moment of DOGE.
Hoskinson remained quite transparent about how Dogecoin’s recent advertising campaign didn’t mean much to him. With a market capitalization of over $ 53 billion to date, DOGE has grabbed fourth place on the CoinMarketCap charts. Cardano, on the other hand, came in seventh place, with a market value of more than $ 43 billion.
Regarding whether the huge market capitalization of the meme currency was of concern to Cardano, Hoskinson said:
“It doesn’t really affect me. I do not mind.”
He, however, added:
“My concern is that Dogecoin holders have unrealistic expectations and the existential threat that the failure of DOGE will have on the cryptocurrency space.”
Charles Hoskinson further pointed out how 99 percent of the Dogecoin community thought they would “get rich” after buying the coin. If the same community mentality continued to persist, it would alert the community to a potential “panic sell”.
More than 90 percent of DOGE’s holdings are held by less than one percent of the participants. He warned:
“At any moment, a cascading fall can happen.”
Underlining “extremely unrealistic expectations”, Hoskinson stated that, once they stumble on failure, their notion of the entire industry would change and become synonymous with Charlie Munger’s review, who commented on the following about Bitcoin:
“It is a scam, it is a Ponzi scheme, there is no use and utility, it is not a real thing.”
Hoskinson said people on the political circuit would use these instances as an excuse to put the heavy hand on regulation in the cryptocurrency industry. He added:
“Whenever a scandal or major meltdown happens in a market, it is often followed by overreaction and regulation that rarely fixes the problem and is often used to destroy competition and benefit inmates.”
Hoskinson did not refrain from saying that if DOGE failed, the entire industry would face an existential crisis. He concluded:
“I don’t like things that destroy my industry’s reputation. I believe that what is happening with DOGE is not sustainable and will result in a systemic catastrophic failure of that cryptocurrency. ”