Charles Hoskinson says that Dogecoin price could crash, causing a regulatory failure for the crypto industry.
Charles Hoskinson - creator of Cardano, CEO of IOHK - has criticized Dogecoin's rapidly growing market value.
Prices are unsustainable, Hoskinson says
Before Dogecoin's recent price performance - which has risen 124% in the past 24 hours - prompted Charles Hoskinson to comment on the status quo.
Dogecoin, he noted, was largely driven by billionaire Elon Musk's promotion of the coin on Twitter. He added that their growth was also driven by "market manipulation by smart whales", possibly referring to / r / WallStreetBets, a Reddit community that hosted many early campaigns. private sector.
Dogecoin's growth rate is unsustainable, Hoskinson argues. For him, Dogecoin does not have a stable development team, the coin's code is largely based on Bitcoin and the coin is not well equipped to deal with security issues (if any).
Hoskinson even encouraged investors to sell their DOGE. “If you've made money, great, but get rid of it! It's a bubble, it's not real, there's nothing sustainable there, ”he said.
A failure in regulation can occur
Furthermore, Hoskinson suggests that the Dogecoin bubble could bring long-term failures to the crypto industry.
He believes that once the Dogecoin bubble bursts, there will be regulatory requirements from agencies like the SEC and the US Congress. "There will be all sorts of regulatory departments running around saying that this is proof that the cryptocurrency cannot control itself," Hoskinson speculated.
Hoskinson suggests that if this trend continues, the crypto industry will be regulated to the extent that blockchain projects will be required to obtain the same approvals as the banking industry.
He added that even before the bubble burst, too high a market value could attract international lawmakers and regulators.