Dogecoin is not good for the cryptocurrency market, expert says

Pictures of Shiba token’s mascot, a shiba inu dog, which mimics Dogecoin’s logo. | Illustration by Alex Cochran, Deseret News

Is Dogecoin a good cryptocurrency coin?

Dogecoin — a meme-based cryptocurrency — might not be so good for the crypto token market, according to Ripple CEO Brad Garlinghouse.

Dogecoin is a cryptocurrency coin that earned a lot of its support through social media, relying on memes tied to the shiba inu dog (it later spawned a spin-off cryptocurrency based around the dog, called Shiba Inu coin).

Garlinghouse, the CEO of global payment company Ripple, said the cryptocurrency market has boomed recently because of inflation, but he’s not sold on every coin.

• “I’m actually not convinced, somewhat controversially I guess, that dogecoin is good for the crypto market,” Garlinghouse said at the Fintech Abu Dhabi event Tuesday, per CNBC.

Garlinghouse said Dogecoin relies too much on hype to prove successful.

• “It was built as a joke, then it got some momentum from some high-profile people like Elon Musk,” Garlinghouse said.
• “Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it,” he added.

Johnny Lyu, the CEO of the world’s third-largest crypto exchange KuCoin, has made the case, though, that meme-based cryptocurrencies can be good long-term investments, as I wrote for the Deseret News.

Lyu said that meme-based cryptocurrencies are sparked by young investors, which might be a way they’ll succeed in the long haul.

• “Seeing bitcoin’s rise, some younger investors without a lot of money want to profit from crypto as well,” Lyu said, per MarketWatch. “But you’d need over $60,000 to buy one bitcoin. So they turn to Dogecoin and SHIB, where you buy tons using just $100.”
• “These investors are very passionate about such tokens and are determined to push the prices higher,” Lyu said, according to MarketWatch.