Ripple’s CEO, the company behind the XRP cryptocurrency, is not a fan of the meme-based digital currency Dogecoin (DOGE).
Brad Garlinghouse believes that DOGE is not suitable for the cryptocurrency market due to the perceived “inflation dynamics” and unlimited supply.
Global inflation has pushed the price of bitcoin (BTC) higher, but it is a warning to Dogecoin fans, Garlinghouse said in a panel run by CNBC at a Fintech event in Abu Dhabi on Tuesday.
“I’m actually not sure if it can be argued that Dogecoin is good for the cryptocurrency market. Dogecoin has an inflation momentum that makes me hesitate to hold on to it, said the CEO of Ripple.
Garlinghouse notes that Dogecoin does not have a strict ceiling on the total number of coins in circulation, which is very different from some major cryptocurrencies such as Bitcoin, which has a ceiling of 21 million coins.
“It was built as a joke and then got support from some famous people like Elon Musk,” Garlinghouse added.
Despite its skepticism of DOGE, Garlinghouse remains optimistic about the cryptocurrency market in general.
Dogecoin is a cryptocurrency based on the Shiba Inu meme that was launched as a joke in 2013. The digital currency started with a supply limit of 100 billion coins, which was reached in mid-2015. Since then, Dogecoin has been replaced to provide an unlimited offer with a bonus cap of 10,000 DOGE per block to keep inflation in check.
DOGE became one of the most successful cryptocurrencies in 2021, reaching the top 10 cryptocurrencies by market value earlier this year. At the time of writing, DOGE is the 10th most valuable cryptocurrency, trading at $ 0.22, more than 6000% more than last year.
It seems that much of Dogecoin’s success comes from the approval of Tesla CEO Elon Musk, who began actively promoting DOGE on Twitter in 2020.
Dogecoin price chart all the time. Source: CoinGecko
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Musk has been tweeting a lot about DOGE lately, when he raised issues related to Binance’s Dogecoin withdrawal on Monday, directly for the exchange of CEO Changpeng Zhao. According to Binance, the current issue stemmed from “a technical issue during the last update that caused 1674 users to resubmit old transactions.”
The CEO said he did not use Binance, despite his experience with the stock market at one point, “but the registration was a bit of a challenge.”