Hoskinson cautioned investors when he said that meme coins have reached billions of dollars in market capitalization despite the lack of user utility.
He also stated that crypto projects should be evaluated according to their mission and vision.
Hoskinson used the following statements;
“Dogecoin (DOGE), Shiba Inu (SHIB) have technically amassed tens of billions of dollars in value, but they have no real user benefit other than the fact that they have a social network behind them. Proponents of these cryptocurrencies think this social interaction is all they need. Old-fashioned like me, on the other hand, value real fundamentals, real transactions, real commerce, the potential for user benefits, and projects about how these will work in the world.”
Hoskinson adds that some cryptocurrencies have led to unrealistic expectations in industry with promises of extremely high returns:
“Every year, regardless of the economic conditions, we will see thousands of cryptocurrency-related projects launched around the world. It is unrealistic to expect an increase of 100x each year.”
According to Hoskinson, these expectations have caused impatience among investors in the crypto market.