The CEO of Ripple, the company behind 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 its supposed “inflationary dynamics” and its unlimited supply.

Global inflation is driving the price of Bitcoin (BTC), but it has a warning for Dogecoin fansGarlinghouse argued in a panel moderated by CNBC at the Fintech Abu Dhabi event on Tuesday.

“I’m actually not convinced, somewhat controversially I suppose, that Dogecoin is good for the crypto market. Dogecoin has some inflationary dynamics of its own that would make me reluctant to hold it, “said Ripple’s CEO.

Garlinghouse pointed out that Dogecoin does not have a hard cap 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 boost from some high-profile people like Elon Musk.”Garlinghouse added.

Despite being skeptical about DOGE, Garlinghouse remains bullish on the crypto 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 mid-2015. Since then, Dogecoin was switched to provide an uncapped supply while capping a 10,000 DOGE reward per block to keep inflation under control.

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DOGE has emerged as one of the most successful cryptocurrencies in 2021, entering the list of the top 10 cryptoassets by market capitalization earlier this year. At the time of writing this article, DOGE is the 10th most valued digital currency, trading at USD 0.22, after rising more than 6,000% in the last year.

Much of Dogecoin’s success has been associated with its endorsement provided by Tesla CEO Elon Musk., who began actively promoting DOGE on Twitter in 2020.

Dogecoin historical price chart. Source: CoinGecko

Musk has continued to tweet a lot about DOGE recently, pointing out the issues related to the withdrawal of Dogecoin on Binance. directly to the exchange’s CEO, Changpeng Zhao, on Monday. According to Binance, the ongoing issue was caused by a “glitch during the recent upgrade process that caused old transactions to be forwarded to 1,674 users.”

The CEO said not using Binance even though it tested the exchange at one point, since “the registry had too many steps to follow”.

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