Charles Hoskinson, the founder of Cardano, spoke of the Dogecoin (DOGE) craze after the joke coin jumped to seventh place in the market value rankings.
This week, DOGE had seen a price increase of 522% in the past seven days and 118% in the past twenty-four hours.
The asset jumped from $ 0.004 in January to an all-time high of $ 0.43, with the attention and support of Tesla CEO Elon Musk and billionaire entrepreneur Mark Cuban, and entered the mainstream.
While Dogecoin has entered the crypto world as a joke, Hoskinson warns that as the asset’s price rises into the stratosphere, a bubble is forming that will cause many to lose an alarming amount of money very quickly.
“DOGE has always been a kind of joke, fun and carefree thing for our industry. It was something that always seemed to be around but most of the time we didn’t take it seriously.
Recently, mainly due to the efforts of Elon Musk and the market manipulation of clever whales, DOGE has become stratospheric and is seen as a haven for new entrants to the cryptocurrency space.
Let’s be very frank, this is a balloon. DOGE’s price is not sustainable. It will collapse and a huge amount of retail investors will lose their money very quickly.
Hoskinson also said that the bursting of this bubble; He predicts that it will serve as an invitation to regulators on the board to enter the space and watch more closely the way the crypto industry works.
“You know, when you look at third generation cryptocurrencies, Algorandlara (ALGO), Tezos (XTZ), Avalanches (AVAX), Cardano (ADA), you will see that these projects have large teams, capital and accountability. There are uses and benefits wishes or facts… DOGE does not have a stable development team. DOGE has no original technology. Just a copy of Bitcoin …
After the bubble burst, the incident will turn into such that there will be congressional investigations. The US Securities and Exchange Commission (SEC) will be circulating. There will be all sorts of regulators around saying, “This is proof that cryptocurrencies can’t control itself and we need to get in and save you.” “