Charles Hoskinson Slams Dogecoin Doubles Down To Make Doge A Cardano Sidechain

Hoskinson believes that the current Dogecoin network cannot support the needs of Twitter.

In a series of tweets on Sunday, Cardano founder Charles Hoskinson doubled down his pitch to make Dogecoin a Cardano sidechain.

Notably, Hoskinson also released an hour-long video on YouTube arguing that Elon Musk can build a decentralized Twitter for profit and pleasure using Cardano and Dogecoin. 

It comes as the Cardano chief believes there is an excellent chance of a Dogecoin integration with Twitter now that Musk is at the helm of affairs. However, in a series of tweets on Sunday, Hoskinson raises specific concerns about the current state of the Dogecoin network.

Consequently, the Cardano chief believes that DOGE, in its current state, can not support the needs of Twitter. 

Notably, Hoskinson still believes that a DOGE price run-up to $1 could lead to a significant dump and many retail investors losing their monies. Hoskinson says this as the supply is concentrated with few holders who can sell at any time for a profit. Moreover, per Hoskinson’s statements, such massive losses are bound to attract harmful crypto regulations.

The entire rant was based on a fact that hasn’t changed. The ownership of doge is heavily skewed toward just a few wallets that can dump profitably at pretty much any price. The context of that video was the doge surge to a dollar would result in this event.

— Charles Hoskinson (@IOHK_Charles) November 6, 2022

It is worth noting that, as per data from Lookonchain, the top 50 DOGE holders represent nearly 64% of the supply.

Hoskinson reasons that the pioneer doggy meme coin offers little utility to users, with many holders speculating in hopes that it would make them rich. Consequently, a significant price pump with little utility to keep the whales in could lead to a massive dumping of DOGE.

Furthermore, Hoskinson fears that DOGE as it is and tokens like it paints a wrong picture of the crypto space.

Elon might make good on his desire to actually invest in doge and take it beyond where it’s at. If that’s the case, then I’m trying to be helpful and give some guidance from my decade of experience. If you watch https://t.co/G17Hf5d9Uo 18 minutes in, then you’ll feel mainstream

— Charles Hoskinson (@IOHK_Charles) November 6, 2022

Charles further said that Doge was created as a joke and a fork of bitcoin with no utility. Doge has nothing but a back of 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.”

Meanwhile, it is not the first time that Hoskinson is expressing such sentiments. Notably, the Cardano chief had stated much of the same in a 6-minute-long YouTube video in April last year, near the peak of the DOGE bull run fueled by Musk’s tweets. At the time, he asserted that DOGE was a mockery of his life’s work and the innovative work of others building in the crypto space.

Even then, Hoskinson also asserted that despite these concerns, the token held potential due to its following. Declaring that value comes from people, the Cardano chief proposed creating a hard fork of the chain to have a treasury and smart contracts such that it becomes the “ultimate” Internet of Things (IoT) coin.

As Hoskinson highlighted, DOGE was created as a joke in 2013. However, it continues to attract a solid retail following partly due to hype, its fun community, and the qualities that make it suitable for cheap peer-to-peer payments.

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