Scrutiny mounts over Cardano: Did a $619 million worth of ADA get misappropriated? - Hoskinson's reaction...
It's been a wild ride in the world of Cardano [ADA] once again, as co-founder Charles Hoskinson tackled relentless accusations of 2021 ledger manipulation and fund theft allegations.
You've likely heard the buzz about Hoskinson's explosive response on Twitter, addressing rumors that he manipulated the Cardano ledger to snatch control of 318 million ADA — worth a whopping $619 million at the time. But don't be fooled by these slanderous claims; Hoskinson stands firm and is threatening legal action against those spreading such falsehoods.
For the lowdown, let's delve into the controversy. Now, a detailed thread by NFT artist Masato Alexander has taken the crypto community by storm, pointing fingers at Hoskinson and the Cardano team for secretly manipulating the blockchain’s ledger in 2021 to pilfer the eye-watering amount of ADA tokens originally allocated to early investors. According to Alexander, these tokens were nabbed by employing a tricky protocol change during Cardano’s Allegra hard fork, which enabled developers to seize control of the funds through a function called . This function allegedly sieved out unspent transaction outputs (UTxOs) linked to the original ICO, shifting them into Cardano’s network reserves via a Move Instantaneous Rewards (MIR) transaction. This move, supposedly, left many elderly Japanese ICO investors out in the cold without access to their ADA or even a refund.
Now, Hoskinson has put the record straight, denouncing these accusations as pure lies and demanding an end to the spreading of such misinformation. He explains that the ADA in question became unspendable after the hard fork and ended up in a custodial account managed by the Token Generation Event (TGE), which continued redemption for several more years post-fork. According to Hoskinson, only a tiny fraction (18 to 24 million ADA) remained unclaimed after the redemption period expired. The remainder was returned to the TGE and later donated to Intersect, a Cardano governance group, as per the usual transparent processes used to fund the Cardano Foundation.
Of course, not everyone is jumping on the negative bandwagon. Some experts and community members argue that the operations were carried out through legitimate protocol upgrades approved by consensus, without rewriting or reorganizing the blockchain ledger. Crypto analyst Jonathan Morgan emphasizes the transparency and governance alignment, pointing out that most of the seized ADA (around 300 million) was successfully returned to ICO purchasers. He also highlights that repurposing the remaining balance was done openly for community development purposes.
To top it all off, things are looking mighty fine for ADA at the moment. Despite the controversy, ADA is currently trading at $0.7052, up an impressive 4.39% over the last 24 hours, as per CoinMarketCap. This price surge, combined with strengthening technical indicators and rising whale activity, might just be a sign that ADA is gearing up for a bullish breakout in the near term. If ADA clears the $0.70-$0.80 resistance zone decisively, it'll be game on for sustained upside momentum.
So there you have it — the latest drama in the Cardano sphere. Keep your eyes peeled for further developments and remember: when in doubt, always hover over the FUD (Fear, Uncertainty, and Doubt) radar to spot misleading information and separate the wheat from the chaff.
In the meantime, take a breather and learn about how Bitcoin defies doubts at $98K despite investor caution and Litecoin's stand at key support before embarking on a bullish journey towards $94 and beyond.
- Co-founder Charles Hoskinson of Cardano [ADA] has been embroiled in heated discussions over allegations that he manipulated the Cardano ledger to seize control of 318 million ADA in 2021.
- In response, Hoskinson insists these accusations are false and threatens legal action against those spreading such rumors.
- NFT artist Masato Alexander has ignited a debate in the crypto community, claiming that Hoskinson and the Cardano team manipulated the blockchain’s ledger to appropriate ADA tokens allocated to early investors.
- These tokens were allegedly seized through a function called during Cardano’s Allegra hard fork, which reportedly shifted unspent transaction outputs (UTxOs) linked to the original ICO into Cardano’s network reserves.
- Hoskinson asserts that the ADA in question became unspendable after the hard fork and was held in a custodial account managed by the Token Generation Event (TGE), with the remainder eventually donated to Intersect, a Cardano governance group.
- While some question the legitimacy of the operations, crypto analyst Jonathan Morgan defends the processes as transparent and alignment with governance, with most of the seized ADA (around 300 million) reportedly returned to ICO purchasers.
- Despite the controversy, Cardano's ADA is currently trading up 4.39% over the last 24 hours, strengthening technical indicators, and showing signs of a potential bullish breakout, as per CoinMarketCap.
