On Sunday, Charles Hoskinson, the creator of Cardano, reinforced his proposal to build a sidechain of Dogecoin on Cardano.
Hoskinson made an extended video on YouTube where he suggested that Elon Musk could create a decentralized version of Twitter for both personal gain and enjoyment if utilizing Cardano and Dogecoin.
Hoskinson, the Cardano chief, has expressed optimism that Dogecoin could be integrated with Twitter following Musk’s involvement. But in a series of tweets on Sunday, he highlighted certain issues with the current Dogecoin network.
As a result, the leader of Cardano is of the opinion that DOGE cannot meet Twitter’s requirements in its present form.
Hoskinson is warning that if the DOGE price rises to $1, it could lead to a big sell-off and many everyday investors losing their money. He asserts that this is due to the fact that there are few holders of DOGE who can turn a profit by selling when they want. Furthermore, he believes that these large losses could prompt governments to impose damaging regulations on cryptocurrencies.
It is noteworthy that, according to Lookonchain’s information, the 50 main holders of DOGE account for almost 64% of the total supply.
Hoskinson believes that the original crypto-coin inspired by a meme does not offer much to users, with many of them investing their money in the hope that it would make them wealthy. Therefore, a large increase in price without any real utility could cause whales to sell off large amounts of DOGE.
Hoskinson worries that DOGE and similar digital assets give a distorted view of the cryptocurrency market.
Charles also stated that Doge was created as a gag and a spin-off of bitcoin with no practical use. The only thing propelling Doge is the backing of a wealthy individual.
“Having something that was made as a fork of bitcoin as a fun joke that turns into a low innovation ecosystem that got co-opted by mad speculation off the back of a billionaire using it for something useful is pretty much as risky as it get. It also stereotypes crypto.”
Hoskinson’s comments are not new; he made similar remarks in a YouTube video from April 2020, during the peak of the DOGE surge caused by Musk’s tweets. He declared that DOGE belittled his and other people’s hard work in the cryptocurrency world.
Hoskinson maintained that despite any worries, the token was still promising because of its fanbase. He suggested a hard fork to the chain in order to establish a treasury and smart contracts, making it into what he called the “ultimate” cryptocurrency for the Internet of Things (IoT).
Hoskinson pointed out that DOGE was first introduced in 2013 as a joke. Nevertheless, it maintains a strong base of individual supporters largely due to its publicity, amusing online community and characteristics that make it suitable for inexpensive person-to-person payments.
