Bubble bursts will lead to strict market regulation, Cardano founder urges: Sell your Dogecoin now!

Cardano founder Charles Hoskinson criticized Dogecoin as a bubble with no sustainability. He warned that once the bubble bursts, it will attract regulatory intervention and have long-term impacts on the cryptocurrency industry.

Dogecoin is Just a Bubble

Dogecoin surged from $0.06 to a high of $0.45 in the past week, a 650% increase, briefly becoming the fifth largest cryptocurrency by market capitalization, causing excitement among many market participants. However, not everyone seems to be optimistic about this Dogecoin frenzy.

Charles Hoskinson, the founder of the blockchain platform Cardano and CEO of the development team IOHK, shared his views on the Dogecoin surge in a video released yesterday. He stated that Dogecoin has always been a kind of humorous joke within the industry, an interesting meme cryptocurrency, a lighthearted thing. However, Elon Musk's promotion on Twitter drove the rise of Dogecoin, along with some "smart whales" (possibly referring to WallStreetBets) manipulating the market, fueling Dogecoin's spike.

Charles Hoskinson mentioned that the surge in Dogecoin is just a bubble. Real projects like Algorand, Tezos, Avalanche, and Ethereum have stable development teams, funding for growth, or responsibility for future development, while Dogecoin is just created based on Bitcoin's code, without enough nodes like Bitcoin to address security issues, and lacks sustainable development potential. Charles Hoskinson warned Dogecoin investors to sell their Dogecoin holdings sooner rather than later if they are making money.

Attracting Regulatory Attention

Furthermore, Charles Hoskinson also mentioned that the Dogecoin bubble could have long-term implications for the cryptocurrency industry. He pointed out that once the Dogecoin bubble bursts, regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) and the U.S. Congress may start intervening in the market, leading to various regulatory agencies promoting this as the best example of "cryptocurrency being out of control." If this trend continues, the cryptocurrency industry will inevitably face a certain level of regulation, even requiring blockchain projects to apply for licenses similar to bank charters to operate.

"The cryptocurrency market will become an invitation-only club monitored from the top down, and the freedom we have taken back from the traditional financial system will be lost as a result."

Although the current bubble has not burst yet, the overly high market value may attract the attention of legislators and international regulators. In conclusion, Charles Hoskinson emphasized:

"If this (referring to Dogecoin) is the gateway for retail investors to enter our ecosystem, then at some point, it will harm all of us."