Launched in 2013, with a supply limit of 100 billion coins, Dogecoin, in the end, shifted to an uncapped supply. Brad Garlinghouse, the CEO of Ripple, which is the company that is behind the XRP crypto, is not a fan of DOGE.
Garlinghouse thinks that Dogecoin is not good for the crypto sector due to its supposed “inflationary dynamics” and unlimited supply. Global inflation is pushing Bitcoin’s price higher but Dogecoin fans and investors need to be careful. During a CNBC-moderated panel at the Fintech Abu Dhabi event on November 23, Garlinghouse argued:
“I’m not convinced, somewhat controversially I guess, that Dogecoin is good for the crypto market. Dogecoin has some inflationary dynamics itself that would make me reluctant to hold it.”
The Ripple CEO noted that DOGE does not have a hard limit on the total supply of coins in circulation. This scenario makes it quite different from some of the major cryptos like Bitcoin which is capped at 21 million coins. He stated:
“It was built as a joke, then it got some momentum from some high-profile people like Elon Musk.”
Despite being doubtful about DOGE, Garlinghouse remains optimistic about the crypto market in general.
Buy Bitcoin Now
My personal views on dogecoin aside 😉 I think there will be many winners in this industry. I’m bullish on overall crypto momentum for 2022 w/ regulatory clarity and progress in the UK, Singapore, UAE, Japan and others. 2/2 https://t.co/D42UX3dm4m
— Brad Garlinghouse (@bgarlinghouse) November 23, 2021
How Dogecoin Came Up
Dogecoin is a crypto based on the Shiba Inu meme that was unveiled as a joke in 2013. This digital currency initially had a supply limit of 100 billion coins that it hit in mid-2015. Since then, DOGE was changed to offer an uncapped supply but limited a reward of 10,000 DOGE per block to ensure that inflation is kept under control.
In 2021, DOGE has emerged as one of the most successful cryptos joining the list of top 10 biggest cryptos by market cap earlier in the year. At the time of publication, DOGE is the 10th-biggest crypto trading at $0.22, up over 6,000% within the past year.
A lot of Dogecoin’s success has mainly been linked with the endorsement by Tesla CEO Elon Musk who began to actively promote DOGE on Twitter last year.
The Tesla CEO has continued tweeting a lot about the meme coin in recent months, pushing Dogecoin’s withdrawal-related issues on Binance directly to the exchange’s CEO Changpeng Zhao on November 22. Based on a statement by Binance exchange, the current issue came up due to a:
“Technical issue during the recent upgrade process that caused old transactions to be resent to 1,674 users.”
Musk said that he does not use Binance despite him attempting to use the platform at one point “but sign-up was too many hoops to jump through.”