The CEO of Ripple, the company behind the XRP cryptocurrency, is not a fan of dogecoin memes-based digital currency (DOGE).
Brad Garlinghouse believes DOGE is not good for the cryptocurrency market due to its alleged “inflationary momentum” and unlimited supply.
Global inflation is pushing the price of Bitcoin (BTC) up, but has a warning for Dogecoin fans, Garlinghouse argued during a panel moderated by CNBC at the Fintech Abu Dhabi event on Tuesday.
“In fact, I’m not convinced, somewhat controversially, I guess, that Dogecoin is good for the crypto market. Dogecoin itself has an inflationary dynamic that would make me reluctant to hold onto it, ”said the CEO of Ripple.
Garlinghouse noted that Dogecoin does not have a hard limit on the total supply of coins in circulation, which makes it very different from some major cryptocurrencies like Bitcoin, which is capped at 21 million coins.
“It was built as a joke and then it got some momentum from top people like Elon Musk,” Garlinghouse added.
Although he is skeptical of DOGE, Garlinghouse remains optimistic about the cryptocurrency market in general.
My personal opinions on dogecoin aside;) I think there will be many winners in this industry. I am optimistic about the overall crypto momentum for 2022 with regulatory clarity and progress in the UK, Singapore, UAE, Japan and others. 2/2 https://t.co/D42UX3dm4m
– Brad Garlinghouse (@bgarlinghouse) 23 November 2021
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 it hit in mid-2015. Since then, Dogecoin has been tipped to provide an uncapped supply while limiting a reward of 10,000 DOGE per block to keep inflation under control.
DOGE became one of the most successful cryptocurrencies in 2021, entering the list of the 10 largest cryptocurrencies by market cap earlier this year. At the time of writing, DOGE is the 10th most valued digital currency, trading at $ 0.22, up over 6,000% from a year ago.
Much of Dogecoin’s success has apparently been associated with the endorsement of Tesla CEO Elon Musk, who began actively promoting DOGE on Twitter in 2020.
Related: Tesla Hints He May Resume Support For Crypto Payments Soon
Musk has continued to tweet a lot about DOGE recently, bringing up the issues related to the withdrawal of Dogecoin on Binance directly to exchange CEO Changpeng Zhao on November 22. According to Binance, the ongoing issue was caused by a “technical glitch during the recent upgrade process.” that caused old transactions to be returned to 1,674 users. “
The CEO noted that he does not use Binance despite the fact that he tried the exchange at one point “but the registration was too complicated to go through”.