Most of the canine cryptocurrencies, especially Shiba Inu and Dogecoin have been victims of online speculations. Despite the surge, many believe these tokens will exist as long as memes trend on the internet. In this development, this renowned figure is the latest individual to address the FUD concerning these “speculative” coins. He even believes that trusting these memecoins would lead to depression and/or hyperinflation.
The community got no ‘Calm’
— Charles Hoskinson (@IOHK_Charles) November 18, 2021
Cardano and IOHK chief Charles Hoskinson in the recent Youtube discussion has questioned the rise of DOGE and SHIB. A majority of crypto users are now driven by a price. He believes that is one of the reasons why, ‘there’s no perspective, calm is no longer there within the community.’
These tokens reached market caps of billions of dollars despite lacking user utility.
“We have Dogecoin, and Shiba Inu. They have accumulated technically tens of billions of dollars of value but there’s no real user utility outside of the fact that there’s a social network behind them.”
Needless to say, canine token supporters would say otherwise.
“The adherents of these things will argue that these social networks themselves represent the value and therefore, that’s all you need.”
According to the chief founder, crypto projects should be evaluated based on their mission and vision. He asserted that:
“Old school people like me say you have to have real fundamentals, real transactions, real commerce, a potential for user utility, a path to these things and a view of how these things are going to work in the world, change the world.”
DOGE and SHIB, with their extremely low price and extremely high returns, have resulted in the creation of a delusion in the industry.
“Every year, we will see thousands of cryptocurrency-related projects launching around the world without end, regardless of economic conditions. It created a distortion about our expectations of return. And many regulatory bodies have warned people about this. But it is unrealistic if there’s a 100x or something to expect that to happen every single year. It just can’t. Math doesn’t work that way.”
This also explains the sudden hike in the number of “impatient” traders, or otherwise termed as “weak hands“. Although there are a series of repercussions down the line as a consequence of local returns, people have developed very unhealthy views on how long things should take and where value comes from.
He further opined:
“Many people are starting to subscribe to the ‘Greater Idiot Theory’ of get-in-fast, get-out-fast and somehow you will have this great life.”
All the FUD, but where’s the fall?
Both SHIB and DOGE have enjoyed a burst of good sunshine in terms of adoption. Just recently, one of the largest crypto platforms Gemini, then Binance listed SHIB. Daddy Dog too has enjoyed this being the older coin. Indian exchanges pinned the said tokens as crowd favorites.
Overall, despite the noise, their trading volume as well price continue to trend in the green zone.