Cardano Founder Charles Hoskinson Defends Input Output Global Amid Criticism

Cardano faced a decline on Sunday as its founder, Charles Hoskinson, took to social media to address criticism surrounding Input Output Global (IOG), the blockchain research and engineering firm behind Cardano.

IOG’s ADA Holdings Clarified

Hoskinson clarified that IOG earned its ADA holdings, rather than receiving them as a donation. “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.” This statement contrasts with the Cardano Foundation (CF), which received ADA as a donation and has a mandate to allocate those funds to ecosystem development.

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 in 2015. We’ve been here for 9 years building.

Speculation Over IOG’s Contribution to USDC Integration

Hoskinson’s comments came amid speculation about whether IOG would contribute its ADA to support the integration of Circle’s USDC stablecoin. However, Hoskinson seemingly dismissed this notion.

Hoskinson Addresses Criticism Over Stablecoin Integration

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 highlighted that 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. 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.

Challenges Facing Cardano’s Adoption

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.

Upcoming Developments for Cardano

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. Additionally, President-elect Donald Trump’s expected lighter regulatory approach toward cryptocurrencies may benefit Cardano.

At last check on Sunday, Cardano was trading at roughly $0.96. For more updates on Cardano and other cryptocurrency news, stay tuned to Global Crypto News.

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