After a 4% decline, Cardano (ADA) is showing signs of recovery, currently trading at $0.9559. The broader market turbulence and waning investor interest impacted its price trajectory. However, experts remain optimistic about ADA’s potential rebound. Meanwhile, Cardano’s founder, Charles Hoskinson, has made headlines by burning $100 million worth of ADA-based meme coin, CHARLES.
Charles Hoskinson Burns $100M in ADA Meme Coin
In a bold move, Charles Hoskinson incinerated 900 billion CHARLES tokens on January 30, an unofficial ADA meme coin airdropped to him by its anonymous creators. The token’s developers sought to capitalize on Hoskinson’s name, but he swiftly set up a burner wallet and destroyed the entire supply in a live stream. The massive burn wiped out $100 million in market value, with the CHARLES meme coin reaching a fully diluted valuation of $71 million before the burn.
Hoskinson humorously remarked about sitting on 900 billion tokens and criticized the absurdity behind its hype-driven valuation. Despite the stunt, the incident raised broader concerns about celebrity-endorsed tokens and the speculative frenzy surrounding meme coins.
Why Did Hoskinson Burn the Tokens?
The cryptocurrency space has seen a surge in celebrity-driven meme coins, including the TRUMP and MELANIA tokens. However, Hoskinson took a different stance, emphasizing that hype does not equate to real value. He warned crypto investors against blindly following such projects and reaffirmed his commitment to maintaining Cardano’s reputation as a serious blockchain initiative.
His decision sparked mixed reactions. While some praised his integrity, others criticized the move, suggesting that donating the funds instead of burning them would have been more beneficial. The CHARLES token suffered an 83% price crash within 24 hours, according to Taptools.io.
What’s Next for Cardano?
Despite recent market fluctuations, Cardano remains one of the most utility-driven cryptocurrencies. Currently hovering around $0.96, ADA exhibits a bullish cup-and-handle pattern, indicating a potential rally. Analysts predict an upward trajectory, with key resistance at $1.10 and a potential breakout toward $1.30. Should ADA maintain support at $0.90, further gains could push its price beyond $1.7961.
Hoskinson’s decision highlights growing concerns over dubious crypto projects. Meanwhile, ADA’s technical indicators suggest a bullish setup, making it a token to watch in the coming weeks.
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.
Also Read: Cardano Achieves Full Decentralization with Plomin Hard Fork: What’s Next for ADA’s Price?
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