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- Independent audit clears Hoskinson of $600M ADA theft claims.
- Cardano Foundation accused of spreading damaging rumors.
- ADA sentiment drops to fear levels, but rebound potential remains.
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The Cardano (ADA) ecosystem is facing renewed turbulence after founder Charles Hoskinson strongly criticized the Cardano Foundation (CF) over its handling of a $600 million theft allegation. The controversy, though recently dismissed by an independent audit, has sparked internal discord that could weigh on ADA’s market sentiment.
Hoskinson Slams Cardano Foundation Over Integrity Concerns
Speaking in a recent X (formerly Twitter) space, Hoskinson accused the CF of “ruining the integrity” of the ecosystem by spreading allegations that early insiders had misappropriated over 300 million ADA tokens. He suggested the community should consider drastic actions, including a vote of no confidence or even legal action against the foundation in Switzerland.
Hoskinson proposed that the CF’s funds could be redirected to the Cardano treasury or another organization better aligned with the project’s mission.
Independent Audit Clears Hoskinson of Theft Claims
In response to the controversy, Hoskinson commissioned an independent audit. The report, published this week, concluded that the allegations had no factual basis. Instead, it revealed that unredeemed ADA from early investors was allocated to a trust fund called Intersect, supported by Input Output and EMURGO, to guide Cardano’s roadmap.
This finding absolves Hoskinson and insiders of any wrongdoing but raises fresh concerns about community governance and trust.
Market Impact: Fear Grips ADA Holders
Despite the audit’s findings, the feud between Hoskinson and the CF has unsettled the community. Santiment data shows ADA sentiment dipping into “fear” territory as investors turn cautious. However, history suggests that when crowds grow bearish, prices often move in the opposite direction—hinting at potential upside.
Also Read: Cardano vs Ethereum: Hoskinson Stakes His Legacy as ADA Challenges ETH’s Dominance
Cardano’s one-month liquidation heatmap points to liquidity clusters around $0.76 and $0.80 on the downside, while $0.85 and $0.90 stand as key resistance levels. A rebound could be in play if the market shakes off the current uncertainty.
While Hoskinson has been cleared of theft allegations, his sharp criticism of the Cardano Foundation may deepen divisions within the community. Whether this governance rift derails or strengthens ADA in the long run remains to be seen, but in the near term, market sentiment and liquidity levels will be key factors for investors.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
