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Monday, June 10, 2024
HomeCryptoRipple CEO criticizes Dogecoin, "not a good thing" for the crypto industry

Ripple CEO criticizes Dogecoin, “not a good thing” for the crypto industry

At the recent 2024 Consensus Conference, Ripple CEO Brad Garlinghouse spoke show Clear comments on the state of cryptocurrency, with a particular focus on Dogecoin and its role in the broader industry. Garlinghouse’s assessment is both critical and nuanced, emphasizing that his reservations about Dogecoin stem from concerns about the utility and speculative impulse it promotes rather than outright opposition with this coin.

Opening his discussion, Garlinghouse highlighted the United States’ delay in cryptocurrency regulation, describing it as highly inappropriate for the world’s largest economy.

“The United States represents the lowest level of regulatory clarity,” he said, suggesting that this uncertainty hinders the flow of institutional money into crypto and overshadows potential growth of industry.

The Ripple CEO argued that the current environment is characterized by regulatory ambiguity and has unintentionally paved the way for the growth of meme-inspired cryptocurrencies like Dogecoin. Garlinghouse explains:

“When you really unlock the U.S. economy and get real institutional money flowing in, it’s hard to predict some of the growth opportunities.”

Garlinghouse points out that clearer regulations could refocus investment on fundamentally more affordable projects.

Why Dogecoin is not a “good thing” for crypto?

Turning his attention specifically to Dogecoin, Garlinghouse expressed doubts about the cryptocurrency’s added value to the sector.

“You know, I feel really uncomfortable saying these things, but I’m going to say them anyway. I don’t think Dogecoin is a good thing for the industry. And I’m not anti-Dogecoin, but like I don’t know what the use case is,” he elaborated.

His criticism revolves around the lack of substantive projects or utilities growing around Dogecoin, unlike other blockchain technologies that are increasingly being applied to real-world problems. Dogecoin was the first memecoin, a precursor to today’s memecoin craze.

Notably, this is not the first case of Ripple CEO criticizing Dogecoin. Earlier this year, at the World Economic Forum in Davos, he highlighted Dogecoin’s lack of clear applications, attributing its popularity and market volatility largely to endorsements by prominent individuals such as Elon Musk. , rather than any economic or technological value. He said:

“Other than Elon Musk as the central figure, I don’t see any use case and purpose.”

Garlinghouse’s comments come at a time when the cryptocurrency market is seeing a performance gap between traditional altcoins and memecoins. Although Bitcoin has rallied above its previous highs from 2021, altcoins like XRP and ADA are still down -85% from their peaks. Meanwhile, memecoins, including PEPE, Dogwifhat (WIF) and BONK, have attracted significant trader interest, generating significant profits.

This trend emphasizes broader market behavior that leans more toward speculation than utility. It’s a dynamic that Garlinghouse criticizes, advocating a shift toward solving real problems.

“We have to do more than just speculate. I see a lot of real utility on many other chains. And I think that’s important. And for me, the 10-year forecast has to revolve around this, not speculation but solving real problems,” he emphasized.

At the time of writing, DOGE was trading at $0.14.

DOGE 1-day price chart | Source: TradingView

You can see the DOGE price here.

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According to Bitcoinist

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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