Charles Hoskinson, the founder of Cardano, reiterated his call for Dogecoin to become a Cardano sidechain in a series of tweets on Sunday.
Additionally, Hoskinson also published an hour-long YouTube video proposing that Elon Musk may use Cardano and Dogecoin to create a decentralised Twitter for both business and pleasure.
According to the Cardano CEO, there is a good chance that Dogecoin will be integrated with Twitter now that Musk is in charge. In a series of tweets on Sunday, Hoskinson expressed specific concerns about the status of the Dogecoin network.
Consequently, the Cardano chief believes that DOGE, in its current state, can not support the needs of Twitter.
Notably, Hoskinson continues to think that a run-up in the price of DOGE to $1 might trigger a big dump, with many regular investors losing money. Hoskinson makes this claim because of the condensed supply and the small number of holders who can sell at any time for a profit. Furthermore, according to Hoskinson’s assertions, such significant losses will inevitably lead to damaging crypto legislation.
It is important to remember that the top 50 DOGE holders account for almost 64% of the supply, according to data from Lookonchain.
According to Hoskinson, the original doggie meme coin has no use for its users, and many of its holders just hold onto it for speculation in the hopes that it would make them wealthy. Therefore, a large DOGE dump could result from a price increase that has no use in keeping the whales within.
However, Hoskinson worries that the current DOGE and tokens similar to it present a false impression of the cryptocurrency space.
Charles added that Doge was a fork of bitcoin that had no utility and was made as a joke. Doge offers nothing except backing from a billionaire.
“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 has already expressed similar views, so it’s not entirely new. Notably, the Head of Cardano made similar claims in a 6-minute YouTube video from April of last year, at the height of the DOGE bull run sparked by Musk’s remarks. At the time, he claimed that DOGE was a disrespect to the creative work of others developing in the cryptocurrency industry as well as his lifetime’s effort.
Despite this, Hoskinson claimed that the token had potential despite these worries because of its following. The Cardano chief recommended a hard fork of the chain so that it can have a treasury and smart contracts in order to become the “ultimate” Internet of Things (IoT) coin, asserting that value derives from people.
Hoskinson mentioned that DOGE was invented in 2013 as a joke. Nevertheless, it continues to have a sizable retail following in part as a result of excitement, a lively community, and characteristics that make it perfect for low-cost peer-to-peer payments.