Ripple CEO Weighs In On Dogecoin
There have been a lot of arguments concerning the so-called memecoins that have taken the crypto industry by storm this year. Dogecoin and Shiba Inu, the two most popular memecoins, have done thousands in percentage profit since the year began. But many people have differing opinions about the inflation dynamics of Dogecoin.
One of the most popular CEOs in the crypto industry, Brad Garlinghouse, has said that he is unimpressed with Dogecoin’s inflationary dynamics. Garlinghouse is the CEO of Ripple Labs, the owner of the XRP token. He spoke during a fintech panel held in Abu Dhabi yesterday. Garlinghouse expressed his reservation about DOGE and how it affects the crypto market.
Dogecoin launched in 2013 with an initial supply limit pegged at 100 billion DOGE. but as the demand for DOGE went up, the Dogecoin developers edited the supply code and made it infinite. As of writing, there are 132.25B DOGE coins in circulation and the token has a market cap of $28.55 billion.
DOGE “Not Good” for Crypto Market
Garlinghouse doesn’t think that DOGE is good for the crypto market. His reason is simple; DOGE has some inflationary dynamics that make him unconvinced of the token’s role as a store of value. According to him, the lack of market circulating cap on Dogecoin is a major difference between Dogecoin and Bitcoin, the world’s largest token.
Garlinghouse also noted that Dogecoin, which started as a joke or meme, only gained traction and massive momentum after popular individuals like Elon Musk pulled their weights behind it. Garlinghouse also noted that the regulatory agencies in Japan and the UK among other countries are making progress in defining crypto regulations.
He then closed by saying that he believed that the crypto market will have a generally bullish trend in 2022. Dogecoin has performed relatively well in 2021, having gained 6,000% in the last year. Sitting at number 10 on Coinmarketcap, Dogecoin remains among the most valuable coins in the market today.
DOGE Binance Issues
Over the last two weeks, many DOGE holders on Binance have experienced a glitch in withdrawals on the exchange platform. The situation prompted the unofficial Doge promoter, Elon Musk, who started promoting Dogecoin on Twitter in 2020, to ask Binance why the situation has lingered.
Binance responded by saying that the issue was being resolved and could be done in just over a week. But the exchange of words went on when Musk said that DOGE holders should not be treated to such experiences. Yesterday, Musk agreed with a tweet that said that crypto holders should abandon centralized exchanges.
DOGE has been backed to hit $1 soon although it has not shown a strong bullish trend to hit that in recent weeks. The token is seeing increasing use cases as big names are reportedly adopting Dogecoin for payments. Musk’s Tesla and theater giants, AMC are among the companies that are reportedly interested in Dogecoin payments.
As the world marches towards crypto adoption, the battle for tokens to be in strategic positions will intensify.