Tag Archives: Cardano

Cardano’s Charles Hoskinson Warns of Centralization Risks in the Crypto Industry

Cardano’s Charles Hoskinson Warns of Centralization Risks in the Crypto Industry

By Newton Gitonga – February 22, 2024

Charles Hoskinson, the founder of Cardano, has issued a stark warning about the dangers of centralization in the cryptocurrency industry.

Speaking during a live broadcast titled “Legacy is Eating Crypto” on Monday, Hoskinson cautioned that the growing influence of a small number of powerful actors could undermine the core principles of cryptocurrency, such as decentralization, privacy, and equality.

Notably, the pundit highlighted the rapid growth of stablecoins, such as Tether (USDT) and USD Coin (USDC), which now account for approximately 70% of all on-chain transaction volume. According to Hoskinson, these stablecoins, backed by traditional assets, are subject to the regulations of their jurisdictions and central issuers, creating potential vulnerabilities and centralization risks.

“USDT and USDC…are asset backed which means that there’s a central issuer. There is a company who is regulated in a jurisdiction subject to that jurisdiction’s rules and regulations, and whatever that jurisdiction wants to put upon that company, permissive or otherwise, they are subject to it cannot get out of it,” said Hoskinson.

In contrast, Hoskinson advocated for algorithmic stablecoins, which are not backed by traditional assets and operate decentralised. Notably, algorithmic stablecoins, such as DAI, maintain their value through algorithms and smart contracts without relying on a central issuer or traditional assets. However, the crypto market has been cautious since the TerraUSD (UST) de-pegging incident in May 2022, which raised concerns about their safety and caused a ripple effect on the broader crypto market.

Despite the risks, algorithmic stablecoins offer advantages such as decentralization, autonomy, and potentially higher yields. Developers have thus been improving their design and functionality, positioning them as a potentially significant force in the cryptocurrency market.

Hoskinson also criticized the increasing power of a small number of Legacy actors, including centralized exchanges, regulated institutions, and ETF holders like BlackRock, who control a significant portion of the value flow in the cryptocurrency market. He argued that these entities have the power to decide the future of cryptocurrency projects, as they can influence listings, liquidity, and regulatory compliance.

“As more of these Legacy actors come in, they’ll acquire more and more of the supply. They already have a fifth of what Satoshi has,” Hoskinson added. “10 Legacy regulated institutions control the vast majority of your value flow and also get to decide the future of all of these projects.”

That said, Hoskinson emphasized the importance of preserving the core values of cryptocurrency, including freedom of association, commerce, and expression, and the need to resist the encroachment of legacy actors in the industry. He further urged the community to remain vigilant and to consider the long-term consequences of centralization and the potential erosion of the core values of the cryptocurrency movement.

Notably, Hoskinson has consistently advocated for decentralization, even as Cardano continues to receive improvements aimed at promoting security, scalability, and sustainability while empowering users and developers with greater control and autonomy.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Charles Hoskinson Forecasts Cardano’s Triumph Over Ethereum with Upcoming Developments

Charles Hoskinson Forecasts Cardano’s Triumph Over Ethereum with Upcoming Developments

By Newton Gitonga – February 10, 2022

Charles Hoskinson, the founder of Cardano, has expressed confidence in the future of the network, underscoring its potential to surpass Ethereum in the realm of decentralized finance (DeFi) and blockchain innovation.

Speaking during a recent interview with Dan Gambardello, host of the Crypto Capital Venture YouTube channel, Hoskinson noted the remarkable growth of the Cardano ecosystem, especially in the face of challenging market conditions. He emphasized the community’s dedication and collaborative efforts in propelling Cardano forward.

Despite initial scepticism labelling Cardano as a “ghost chain,” he stressed how the project had defied expectations, boasting over half a billion dollars in total value locked (TVL) during a bear market.

“We’ve had overwhelming participation and constant growth and innovation,” said Hoskinson, highlighting the vibrant activity within the Cardano ecosystem, with numerous projects and transactions fueling its expansion.

Addressing criticisms and comparisons to Ethereum, Hoskinson underscored Cardano’s steady progress and its distinct approach to scalability, governance, and innovation. He pointed out the misconceptions surrounding benchmarks like TVL and ADA price, emphasizing the significance of Cardano’s comprehensive roadmap and its focus on building a robust infrastructure.

“We know how to scale, we know how to get fast finality, we know how to get partner chains in, we know how to get rollups in,” Hoskinson asserted, outlining Cardano’s strategic initiatives to address scalability and network efficiency.

According to the pundit, a pivotal aspect of Cardano’s future success lies in its governance model and the utilization of its treasury funds. With nearly $750 million worth of ADA in the Cardano treasury, Hoskinson highlighted the community’s governance over these resources, enabling strategic investments in ecosystem growth and development.

Moreover, Hoskinson emphasized Cardano’s collaborative approach and burgeoning partnerships with other blockchain projects. He also highlighted the interoperability and synergies fostered by Cardano’s Partner Chains framework, enabling seamless integration with other blockchain ecosystems.

Hoskinson expressed confidence in Cardano’s potential to become the dominant governance system in the crypto space, toppling networks such as Ethereum.

“We’re getting recursion and rollups and that means all this stuff that’s happening in Ethereum not only works on Cardano works best on Cardano…so we will be probably one of the dominant zero knowledge layers thanks to all the work,” he added.

In light of recent developments like the intersect platform and advancements in scalability solutions, Hoskinson asserted that Cardano is poised for exponential growth. He encouraged a shift away from tribalism and adversarial dynamics within the crypto space, emphasizing the collective benefits of collaboration and innovation.

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Get secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

Cardano Whales On Buying Spree

Cardano Whales On Buying Spree With Record ADA Holdings As Price Closes In On Bullish Sprint

By Newton Gitonga – April 13, 2022

Cardano’s biggest whales seem to have bounced back after an eight-month-long drawdown that saw investors offset some of their ADA holdings for profit to scoop up more coins.

According to blockchain analytics firm Santiment, despite ADA being down close to 60% from September highs, ADA whales are back to owning the largest supply of coins. ADA whales are entities that hold 10 million coins or more in their wallets.

“Cardano is down -59% since its $3.10 all-time high. However, the asset’s top whales (holding 10M+ ADA) have returned to their largest percentage of supply held in two years, at 46.6%. Note that a large portion of these addresses is owned by exchanges.” Santiment wrote on Tuesday.


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A recent report by the firm has also shown that the group of addresses holding between 10,000 to 100,000 ADA has been accumulating rapidly, as they continuously bought dips since the price started dropping in late September and now hold 16.8% of the available supply./p>

Santiment also sheds light on Bitcoin’s whale behavior, noting that the cryptocurrency saw a steady supply of 4,000 whale transactions exceeding $1M+ Monday through Friday, with mild slowdowns on weekends. It however notes that large increases are needed if the price is to foreshadow March highs./p>


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Looking at Ethereum and other altcoins, Santiment noted that the ongoing FUD could create “buy the dip” opportunities. The firm also mapped out elevated growth in exchange outflows for ETH, noting that “this climb continues pointing to a greater proportion being kept away from exchange sell-off risk.”/p>

That said, ADA continues its struggle to reclaim the $1 price level after slumping along with other major cryptocurrencies as a result of negative macroeconomic events. Two weeks ago, ADA managed to rise above $1 after bouncing off the $0.78 support and breaking a crucial resistance downtrend line before tapping $1.25. That strength, however, seems to have been sapped in the past ten days, with the price falling below the dollar threshold./p>

Santiment has stated that apart from positive fundamentals, for ADA’s price to rise, an uptick in the number of transactions equal to $100,000+ would be crucial. This may perhaps inject the much-needed liquidity to push ADA back to fresh highs. At press time, ADA ($32B Capitalization) is trading at $0.96, up 5,460.20% from its all-time low./p>

DISCLAIMER: None Of The Information You Read On ZyCrypto Should Be Regarded As Investment Advice. Cryptocurrencies Are Highly Volatile, Conduct Your Own Research Before Making Any Investment Decisions.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley