Binance CEO says dogecoin’s strength demonstrates the real power of decentralization

When it first started to gain popularity in the market, Dogecoin was a bit of an oddity. It transformed the way the crypto market views and interprets the value of an item, regardless of its utility. 

Memes and community love were the only things that moved the digital asset forward. However, in less than a year, the cryptocurrency became one of the most valued on the market.

Use cases for the Dogecoin

Since then, Dogecoin’s creators have attempted to establish use cases for the cryptocurrency. Its utility in the space has been enhanced by its use as a payment method. 

This does not change the reality that Dogecoin was designed to be a meme at its foundation, and this, according to Changpeng Zhao, chief executive of Binance, highlights the strength of decentralization.

Value is determined by the people

Zhao took part in a Q&A session with the Associated Press, where he discussed the most popular meme coin on the market. 

Zhao claims that he has no understanding of Dogecoin or how it works, but that his opinion of the digital asset is irrelevant in the big scheme of things. 

In the past, the value of Dogecoin has fluctuated dramatically. The meme coin, on the other hand, had developed to the point that it was no longer as volatile as it once was. 

It has also lasted in the market. Dogecoin has held up through market crashes and troughs. Its popularity prompted the production of other popular meme coins, such as Shiba Inu and Folk Inu.

What makes them so valuable? People. If people want it, it’s valuable.

 

Image courtesy of Cointelegraph News/YouTube

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.