Dogecoin Co-Creator Says DAOs Are 'Almost Universally Stupid And Doomed'

Dogecoin (CRYPTO: DOGE) co-founder Billy Markus, popularly known as Shibetoshi Nakamoto, criticized DAOs for their structure and questioned their long-term viability. 

What Happened: Markus said on X, “Daos are almost universally stupid and doomed because ‘crypto communities’ are often exclusively interested in short-term profits, the hype is worth more than actual deliveries, and nobody has any incentive to build anything.”

A DAO, or Decentralized Autonomous Organization, is an entity with no central leadership, run by programming code and managed by a community that makes decisions collectively through a blockchain-based voting system. DAOs aim to operate transparently and democratically, with rules encoded into smart contracts.

Markus was responding to a tweet from angel investor Jason Calacanis who expressed the potential of NFTs and DAOs in the cryptocurrency landscape. “NFTs were always fascinating to me,” Calacanis said, adding “Along with DAOs I thought they had the most potential… and I still do.”

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

In August, Markus had another piece of advice for cryptocurrency traders suggesting that they should only invest as much money as they could bear to lose completely, akin to watching it go up in flames.

Dogecoin Adoption On The Rise

Dogecoin has marked a momentous milestone in its journey. For the first time, the number of Dogecoin holders surpassed 5 million.

Data from IntoTheBlock, an on-chain analytics firm, indicates a notable surge in the adoption of Dogecoin. The number of active Dogecoin addresses has doubled since March 2022, reaching an unprecedented 168,000 addresses. Furthermore, the volume of confirmed transactions on the Dogecoin blockchain has experienced a tenfold increase.

Price Action: At the time of writing, DOGE was trading at $0.081, up 4.77% in the last 24 hours according to Benzinga Pro.

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