People invest in dogecoin (DOGE) for fun. This opinion was expressed in an interview with Bloomberg by the founder of the Kraken cryptocurrency exchange Jesse Powell.
According to Powell, the exchange does not compare DOGE with Bitcoin or ether (ETH) due to the radical differences. So, DOGE does not have a limited offer. Cryptocurrencies are more like fiat currencies, which are infinite in emission, he added.
“I don’t see him [DOGE] as a long-term valuable asset because of the inflationary component, ”Powell said.
Powell also added that it is extremely dangerous to invest in an asset that has grown in price 50 times in a month.
“This is extremely risky,” he said.
DOGE bears losses
The comments of the head of Kraken coincided with the collapse of DOGE trading volumes. The correction of the cryptocurrency began a couple of days after the DOGE community planned to hike the asset price to $ 1.
The failure of such a high-profile campaign has already led to serious consequences. So, at the time of this writing, the daily trading volume of DOGE fell by 53% to $ 15 billion.
The price of the cryptocurrency in the DOGE / USDT trading pair sank 13.7% to $ 0.28. DOGE’s market capitalization shrank by $ 5.8 billion.
Earlier, DOGE also criticized the bitcoin bull Mike Novogratz. According to him, the hype around the cryptocurrency resembles the excitement with GameStop. At the same time, Novogratz admitted that he was wrong about the meme cryptocurrency, although he would not invest in it for a long time.
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