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Cardano slips as founder claps back against claims on X

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Cardano slips as founder claps back against claims on X

Cardano was in a slow and steady decline Sunday as founder Charles Hoskinson took to X to defend Input Output Global (IOG), the blockchain research and engineering firm, against criticism over its ADA holdings and the network’s adoption efforts.

Hoskinson clarified that IOG earned its ADA, rather than receiving it as a gift.

“No ADA was ‘given’ to IOG,” Hoskinson stated. “We earned it all. It’s not the people’s money. It’s profit for building Cardano. The original value of IOG’s ADA was around [$8 million] in 2015. We’ve been here for nine years building.”

See below.

No ada was “given” to IOG. We earned it all. It’s not the people’s money. It’s profit for building Cardano. The original value of IOG’s ada was around 8 million dollars in 2015.

We’ve been here for 9 years building. The CF was given ada as a donation. They have a mandate to…

— Charles Hoskinson (@IOHK_Charles) January 12, 2025

Hoskinson contrasted IOG’s ADA holdings with those of the Cardano Foundation (CF), which received ADA as a donation.

The foundation, he said, has a mandate to allocate those funds to ecosystem development. His comments came amid speculation about whether IOG would contribute its ADA to support the integration of Circle’s USDC stablecoin, a notion Hoskinson seemingly dismissed.

Hoskinson: ‘Dishonest people have no place at IOG’

On Saturday, Jan. 11, Hoskinson accused a former CF employee of attempting to “rewrite history” regarding the blockchain’s integration of stablecoins.

The former employee had criticized the network’s lack of progress in this area. Hoskinson clapped back: the CF missed an opportunity to integrate USDC in 2021 for $3 million, a time when the foundation’s holdings were valued at nearly $2 billion.

“They turned down the deal according to their own employee,” Hoskinson said. “Then you rewrite history to eschew any of their responsibility and make it into power dynamics? I’m seriously glad you don’t work for me anymore. Dishonest people have no place at IOG.”

The controversy underscores broader challenges facing Cardano in its push for wider adoption. Major stablecoin issuers like Circle and Tether are reportedly hesitant to support the network, citing concerns over a lack of successful decentralized applications and insufficient transaction volume.

Hoskinson’s remarks highlight ongoing tensions within the Cardano ecosystem, as stakeholders grapple with decisions that could shape the blockchain’s future.

At last check on Sunday, Cardano was trading at roughly $0.96.

Cardano slips as founder claps back against claims on X

Source: CoinGecko

Cardano, which launched its mainnet in September 2017, is gearing up for an integration with BitcoinOS, which will unlock over $1.4 trillion in liquidity.

The developers are also working on Midnight, a scaling project for the ecosystem.

Cardano may also benefit from President-elect Donald Trump, who is expected to adopt a lighter regulatory approach toward cryptocurrencies.

Whether a spot ADA ETF, or exchange-traded fund, gets introduced remains to be seen. So far, crypto commentators are optimistic.

Source

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