Despite Lacking User Utility, Dogecoin (DOGE) and Shiba Inu (SHIB) Have Massive Market Caps: Charles Hoskinson

Meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have been the star performers, recording some of the biggest gains.

2021 has been a stellar year for cryptocurrencies, with the cumulative crypto market cap growing from $750 billion, to heights of $3 trillion

While most cryptocurrencies have more than doubled their prices in 2021, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have been the star performers, recording some of the biggest gains in the market. 

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Charles Hoskinson, the founder of Cardano, has weighed in with his opinion on the meme coins.

Hoskinson on Evaluating Crypto Projects

Charles Hoskinson explained that meme coins have reached billion dollar market caps despite lacking user utility, leading to unrealistic expectations in the crypto industry. He added that the 100x gains from meme coins cannot feasibly happen every year.

Speaking to his 291,000 YouTube subscribers, Cardano’s founder explained that cryptocurrencies should be evaluated based on their vision.

Hoskinson explained that;

“Old school people like me say you have to have real fundamentals, real transactions, real commerce, a potential for user utility, a path to these things, and a view of how these things are going to work in the world, change the world.”

On the Flipside

  • 24 hours after completing its Alonzo upgrade, the Cardano network saw 100 smart contracts generated. The scalability and utility of the blockchain is also expected to further increase with the Hydra upgrade.

Why You Should Care

Investing in meme coins has led to the “Greater Idiot Theory,” urging investors to get-in-fast and get-out-fast. While there can be gains, it is a highly risky investment route.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia