Interestingly, the coin has never received serious consideration by professionals. In recent times, primarily due to the support of Elon Musk and also several unknown whales, Doge’s price has skyrocketed.
Several crypto enthusiasts are happy about this and Elon seems to be happy about the rally, but Charles cautions “Let’s be very clear—this is a bubble,” warns Charles.
“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.”
He went further to state that the nature of rally is “a mockery of my life’s work.” He stressed that Doge does not have any enviable technology and also does not have a focused group of developers to advance it.
Doge Bubble Edition https://t.co/CECmL2CThB
— Charles Hoskinson (@IOHK_Charles) April 16, 2021
Hoskinson’s caution has come at a time when the Dogecoin’s price is rallying. The crypto’s price has nearly tripled in the last 24 hours and is now the fifth largest in terms of market capitalization. In the last week, the cryptocurrency has gained 490%.
“My warning to anybody who will listen is: Don’t buy Doge! Get out of Doge! If you’ve made money, great–Get the Hell out of it!!”
He finishes his video with a caution to crypto enthusiasts, professionals and traders in the industry to rise to this type of price rigging. “If we continue doing these things, we will be regulated to a point where we no longer have freedom and autonomy, and we’re no better than the banks.”
Hoskinson states that he and many people creating third generation cryptos will continue to work every day, although, they would be the only one left to clear the problems, and the sharp rally of the Dogecoin could spark off another bear market.
“I’m just sad and sorry for all the people that are going to lose money, and I’m sad and sorry for all the people in our industry who are delighting from this event, knowing full well what it’s going to do.”
Hoskinson is not the only one to criticize Dogecoin. Several professional in crypto industry have issued a strong statement against the latest rally. Nevertheless, Dogecoin continues to receive tons of support from prominent people including Tesla CEO Elon Musk and Binance founder Changpeng Zhao.
$DOGE 🐕🦺was created to be “a payment system that is instant, fun, and free from traditional banking fees.” – Wiki
It is also probably the most successful and measurable joke in human history, currently at $2+ billion USD market cap.
This is only possible in #crypto. Freedom.
— CZ 🔶 Binance (@cz_binance) January 28, 2021
David Kimberley, an analyst at Freetrade (stock trading application), detailed the reason for the rally in Dogecoin even though everyone knows that the cryptocurrency is a joke.
“Dogecoin’s rise is a classic example of greater fool theory at play, Dogecoin investors are basically betting they’ll be able to cash out by selling to the next person wanting to invest. People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up and then they can sell off and make a quick buck.”