The founder of Cardano, Charles Hoskinson warns that Dogecoin’s recent market rally could have a negative outcome for the overall crypto market industry. Regulators could turn their attention to the digital asset market if the DOGE bubble goes on to burst.
Charles Hoskinson Warns on DOGE’s Market Rally
In a YouTube Livestream titled Doge Bubble Edition, the founder of Cardano blockchain and CEO of IOHK, Charles Hoskinson has warned on Dogecoin’s continual market rally.
He noted that the price of the meme-based cryptocurrency has largely been driven by Elon Musk’s continual endorsement on Twitter, adding its growth has also been driven by “market manipulation by clever whales.”
The growth of Dogecoin is not sustainable, according to Hoskinson. The cryptocurrency does not even have active developers. Given if a security issue arises, the cryptocurrency will not be able to deal with it, Hoskinson points out.
He even encouraged investors to sell their DOGE holdings:
“If you’ve made money, great, but get the hell out of it! It’s a bubble, it’s not real, there’s nothing sustainable there.”
Dogecoin Bubble Could Cost the Crypto Industry
Hoskinson even went far ahead to suggest that the Dogecoin bubble could mean long-term fallout for the cryptocurrency industry. Once the Dogecoin bubble bursts, regulatory bodies will put all the blame on the overall cryptocurrency market, says Hoskinson:
“There will be all kinds of regulators running around saying this is proof that crypto can’t control itself.”
The founder of Cardano even suggested that if the Dogecoin hype continues, the cryptocurrency industry over the long term will be subjected to sterner regulations:
“If this is the gateway for retail investors to enter our ecosystem at some point it’s going to hurt each and every one of us.”
Over the past 24 hours, Dogecoin has seen its price gained by 124%. The cryptocurrency’s return on investment (ROI) vs the U.S. dollar for the past 7-day, 14-day, 30-day, and 1-year periods are 540.9%, 541.8%, 573.7%, and 20,216.4% respectively.