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Ripple CEO blasts Dogecoin for ‘inflationary dynamics’

Ripple CEO blasts Dogecoin for ‘inflationary dynamics’
Written by publisher team

The CEO of Ripple, the company behind the XRP cryptocurrency, is not a fan of the meme-based digital currency Dogecoin (DOGE).

Brad Garlinghouse believes that DOGE is not good for the cryptocurrency market due to the alleged “inflationary dynamics” and unlimited supply.

Global inflation has pushed the price of Bitcoin (BTC) higher, but has a warning for Dogecoin fans, Garlinghouse argued at a CNBC-managed panel at a Fintech Abu Dhabi event on Tuesday.

“I’m actually not convinced, somewhat arguably, that Dogecoin is good for the crypto market. Dogecoin has some of the same inflationary dynamics that would make me hesitant to hold it,” said the Ripple CEO.

Garlinghouse notes that Dogecoin does not have a strict limit on the total supply of coins in circulation, which makes it very different from some major cryptocurrencies such as Bitcoin, which have a cap of 21 million coins.

“It was built as a joke, and then it got some traction from some of the notables like Elon Musk,” Garlinghouse added.

Despite his skepticism about DOGE, Garlinghouse remains bullish on the cryptocurrency market in general.

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 reached in the middle of 2015. Since then, Dogecoin has been swapped to provide unlimited supply with restriction Bonus of 10,000 DOGE per block to keep inflation under control.

DOGE has emerged as one of the most successful cryptocurrencies in 2021, entering the list of the top 10 cryptocurrencies by market capitalization earlier this year. At the time of writing, DOGE is the 10th cryptocurrency by value, trading at $0.22, an increase of over 6000% over last year.

Much of Dogecoin’s success appears to be tied to the endorsement of Tesla CEO Elon Musk, who began actively promoting DOGE on Twitter in 2020.

Dogecoin price chart all time. Source: CoinGecko

Related: Tesla hints that it may soon resume support for crypto payments

Musk has been tweeting a lot about DOGE lately, as he raised the issues regarding the withdrawal of Dogecoin on Binance directly to the exchange’s CEO Changpeng Zhao on Monday. According to Binance, the persistent issue was due to a “technical issue during the last upgrade that caused 1,674 users to resubmit old transactions.”

chief executive officer He said He doesn’t use Binance despite his experience with the exchange at one point “but signing up was too many hoops to get past.”