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Dogecoin and Tesla CEO Elon Musk have been two of the year’s greatest highlights in the cryptocurrency sector. While the former was originally considered just a “meme-coin,” owing to the latter’s ironic marketing efforts, the dog coin is now the sixth-largest cryptocurrency in the business, with a market valuation of more than $40 billion. Despite the fact that DOGE failed to maintain its early-May highs.
Suggesting that Dogecoin was “once seen as merely a meme-coin” is perhaps an exaggeration, however, especially since DOGE hasn’t been able to win over all the skeptics in the market yet. Cardano’s Charles Hoskinson is one of them, with the exec recently telling Lex Fridman that he doesn’t “understand” the frenzy associated with DOGE.
Having said that, it’s important mentioning that the IOHK CEO recognises the significance of Musk’s Dogecoin support. DOGE, he claims, “has become a large thing,” one that has arisen as a viable target for someone to fix up. That is what the tech billionaire is aiming to achieve, with Musk, contrary to initial assumptions, engaging with a few DOGE developers on issues such as transactional efficiency and speed.
It’s also worth noting that, while the inventor of Cardano praised Musk for his “serious” foray into the crypto-space, he did note basic flaws that Dogecoin must address before it can be considered a genuine, long-term rival to other cryptos in the market. DOGE’s monetary policy, for example, is a major concern, especially given its infinite supply, which undermines the sense of scarcity and the story of its potential development as a store of value.
Furthermore, DOGE is “predatorily distributed,” with the top 90 DOGE addresses controlling just about 70% of the total supply. Hoskinson claims that
“They can sell at any price point and make a profit.”
This “existential, ticking time bomb” is what Dogecoin must address, since regular investors would suffer if it detonates. Allowing that to happen, according to Hoskinson, would assure that the “Elizabeth Warrens of the world” step forwards in an effort to rigorously control the space.
It’s worth noting that the exec’s opinions are consistent with those he expressed previously. During one of his regular update meetings last month, Hoskinson said,
“At any time, a cascading failure can happen.”
Given the foregoing, there may be a legitimate reason why Hoskinson is now open to the notion of Dogecoin and Cardano collaborating. Interestingly, when asked whether DOGE might be transferred to Cardano in the past, the exec had reacted with a quick statement emphasising his opinion of the dog currency.
While Hoskinson had previously requested that Musk look to a slew of scholarly publications in order to “fix” Dogecoin, the fact that Cardano’s inventor is more inclined to taking the initiative himself offers up a slew of options.
“It would be a lot of fun. I’m not averse to the idea of cleaning up the codebase.