Dogecoin price attempted hard to sustain above $0.05, also offering the dips to the traders to accumulate more.
Selling pressure mounted as te rounds of Elon Musk being investigated by SEC circulated
Charles Hoskinson, the founder of Cardano Was never really a Doge fan himself, he has cautioned that Dogecoin’s recent market surge could backfire. If and when the Dogecoin bubble bursts, he believes it will draw the attention of lawmakers and regulators.
Hoskinson says DOGE isn’t sustainable and is likely to result in a systemic, irreversible collapse that would disenfranchise millions of investors in a new update on the state of Cardano and the crypto markets.
He argues that such an occurrence will “destroy the image” of the cryptocurrency industry and might even lead to stricter regulations.
The root of the problem, according to the chief executive of Input Output Hong Kong (IOHK), is that people aren’t buying Dogecoin for its utility.
He added that,
When someone buys DOGE, if you look at the commentary of the community, 99% is, ‘We’re going to get rich.’
The only way you get rich with DOGE is if you take your Dogecoin and sell it to someone else. So that other person, you have to ask – why are they buying it?
Are they purchasing that because they intend on using it for something? Or are they purchasing that because they want to get a 10x?
Earlier also he pointed out that Elon Musk’s promotion of Dogecoin on Twitter has fueled the coin’s price rise. He went on to say that “market manipulation by clever whales” has fueled the coin’s rise, likely referring to /r/WallStreetBets, a Reddit group that has coordinated numerous investment campaigns. Dogecoin’s rise, according to Hoskinson, is unsustainable. He pointed out that Dogecoin lacks a stable development team, that its code is primarily focused on Bitcoin, and that the coin is unprepared to deal with security problems if they arise.
He also said that Less than 1 percent of DOGE’s assets are owned by fewer than 1% of the participants. As a result, catastrophic failure is the most likely outcome. People with wildly optimistic aspirations and no experience investing buy these properties and and then once the failure occurs, their opinion of the entire industry will be the same as Bill Maher’s, the same as a lot of people in the mainstream, like Charlie Munger.