Dogecoin is not a decent crypto coin, according to Brad Garlinghouse, CEO of Ripple, because its inflationary nature does not meet the crypto characteristic.
Many crypto users have been won over by the fact that it is the most popular meme coin and one of the most spectacular of the year.
While many in the crypto community think that Dogecoin instills enthusiasm in the market, Ripple’s CEO disagrees, claiming that Dogecoin may be bad for the crypto industry.
He particularly mentioned it in relation to adopting cryptocurrency as an inflation hedge.
The inflationary nature of the meme coin, according to the CEO, does not mesh well into that scenario.
At the Fintech Abu Dhabi event, Garlinghouse took part in a symposium chaired by CNBC. Rising inflation is causing “tailwinds” for the sector globally, he said during the event.
He explained how the Labor Department announced 6.2 percent yearly inflation for the month of October, and Bitcoin’s price soared to an all-time high of $70,000 immediately after.
The Ripple CEO doubted Doge’s ability to apply this approach to its own value proposition.
He stated that he is not sure that Doge is beneficial to the crypto industry, going on to say that Doge has some inflationary dynamics of its own, which makes me hesitant to hold it.
He further stated that, unlike Bitcoin, Dogecoin doesn’t even have a fixed supply, making it a poor candidate for long-term use as an inflation hedging asset.
According to its developer, dogecoin was created in hours and introduced in 2013. It started off as a joke inspired by a popular internet meme.
However, it has since risen to become the tenth largest cryptocurrency in terms of market capitalization. After profiting on Doge’s popularity, Shiba-Inu, another meme coin, sprang to prominence.
The one whale that is alleged to hold 28 percent of all Dogecoin in history, as reported by The Wall Street Journal, is one explanation many doubters persistently criticize Dogecoin.
The mystery surrounding the investment continues to grow. The individual, though, remains unidentified. Similarly, 70% of Dogecoin’s overall capacity is stored in just 100 wallets, making its price readily manipulated by a small number of individuals.
This suggests that Elon Musk isn’t the only one who can have an effect on the price of Dogecoin.
The price of Doge can be influenced in either direction by the mysterious whale. Whales have the ability to drastically affect the market and swiftly sweep little investors away.
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