Binance CEO In Q&A: Dogecoin has been gaining attention since its initial appearance and continues to attract market attention. It is changing how we look at crypto markets and how we feel about the value of assets, regardless of their effectiveness. Memes and communities are the only drivers of digital assets. The asset became one of the most popular cryptocurrencies on the crypto market in less than a decade.
Dogecoin developers have been working since then to create use cases for cryptocurrency. This makes it more attractive as a payment option. This doesn’t mean that Dogecoin’s core isn’t funny. Binance CEO Changpeng Zhao said that this proves decentralization’s power.
People Determine Value
Binance CEO Zhao Changpeng took part in an Associated Press Q&A session and shared his opinions on the most well-known meme currencies currently on the market. Zhao claims that he does not understand Dogecoin and how it works. Zhao explains however that his views regarding digital assets are irrelevant to the overall picture. This is one advantage of a decentralized ecosystem.
Dogecoin was volatile in the past. Meme coins are now less volatile than they were in the past. They have also been around for a while. Dogecoin survived a long and difficult journey that saw many market crashes and downturns. Dogecoin’s success was followed by the creation of other successful picking coins like the Shiba Inu or Folk Dog. They are valuable because they have a purpose. Because humans determine their value.
Zhao stated that if there are enough people who like the meme and think it’s funny, then this meme is worth something. Zhao as a Binance CEO said assets can only be valued if others are willing and able to purchase them. Meme coins are therefore valuable.
“To make something liquid, there must be a lot of people who want to buy it or sell it. A neutral market says that an item is worth its value if it has liquidity. It’s not my job to decide.
This Is a Bubble?
When Zhao was asked if the characteristics above of memecoin make it a bubble, Zhao replied: “To some extent, yes.” Zhao said, “To some degree, yes.” It’s not a binary thing. Dogecoin was first described as a bubble in January 2018. Altcoins, however, have maintained their value, though at a lower level.
Binance CEO, John Binance, explained that it can be difficult to define what a “bubble” is. Bubbles are assets that have a fall of more than 80%, such as Bitcoin. However, Bitcoin has returned to a higher value after it fell. Zhao also pointed out that Amazon fell 90% in 2000, but is now one of the most valued companies in the world. Zhao stated that the majority of people would agree it was a bubble. CEO Jeff Bezos disagreed.
Zhao as a Binance CEO explains that Dogecoin is safe as long as investors are aware of the risks involved in investing in digital assets.