Ethereum co-founder Charles Hoskinson says Dogecoin is a worthless ‘bubble’ fueled by Elon Musk’s whim.
3 min read
After Bitcoin , another cryptocurrency that has captured the world’s attention is Dogecoin , the digital currency that was born as a meme. Its explosive growth (400% in just one week) is scaring investors . Now it is Charles Hoskinson , co-founder of Ethereum , who joins the detractors of the cryptocurrency promoted by Elon Musk , claiming that it is a worthless “bubble” that will burst at any moment .
For several months, the Dogecoin has increased exponentially in value. Just in January 2021 it had a price of 0.004 dollars (about 0.08 Mexican pesos). On April 19 it reached its historical maximum price of 0.42 cents (about 8 MXN), and is currently trading at 0.23 dollars (4.50 MXN).
In total, its value has grown 18,000% over last year and now has a market capitalization of around $ 30 billion . However, that day it reached its record price, it exceeded $ 49 billion in value .
Credit: Behavior of Dogecoin (DOGE) in the last month according to graphs from Coindesk.com .
Faced with the Dogecoin boom , Hoskinson warned that it is a worthless cryptocurrency, without original technology and without a stable development team. In addition, he assures that it is a “bubble” driven by “the efforts of Elon Musk, mainly, and the manipulation of the market for astute whales” , which will explode at any moment, and that, in part, it would be the fault of the CEO of Tesla and SpaceX .
“(Elon) Musk keeps posting and posting and posting and he really seems to enjoy doing it. But everything that goes up, goes down and our industry will be worse because of it , ” Hoskinson said in a YouTube broadcast shared on his social networks.
Surprise AMA 04/22/2021 https://t.co/kpXrdIrCot
– Charles Hoskinson (@IOHK_Charles) April 22, 2021
According to the mathematician, “the price of Dogecoin is not sustainable and is going to collapse .” He predicts that when this happens “large amounts of money from retail investors are going to be lost very quickly .”
“When the Dogecoin bubble bursts, it will be a catalyst for regulators and legislators to become more involved with cryptocurrencies and hurt the entire industry ,” said the also creator of Cardano , which is currently the sixth most important cryptocurrency in terms of capitalization of market ($ 35.4 billion).
Regardless of the uncertain future of Dogecoin , surely there are many who are now regretting not having bought units when the cryptocurrency was just a joke and they were at its lowest price. As it happened with Bitcoin , which in February 2017 cost close to a thousand dollars and last April 14 it exceeded 64 thousand dollars .
– Elon Musk (@elonmusk) February 24, 2021