DailyCoin Cardano Regular: Charles Hoskinson on the Offensive; Impersonation Scams on the Rise, and Exciting Developments

• Charles Hoskinson finds himself in a flurry of controversies. 
• ADA deviates from its bullish trajectory. 
• Cardano makes remarkable strides in its development efforts.

Since the last DailyCoin regular, Cardano’s rowdy founder Charles Hoskinson has been embroiled in a series of controversies, ADA has slumped, and Cardano-related scams have been on the rise, shaping October to be an eventful month. In this edition of our bi-weekly update on Cardano, we turn to our expert, Insha Zia, to provide insights into these developments.

News and Events: Understanding the Impacts

ADA Deviates from Bullish Trajectory Toward Yearly Lows

Cardano staged a remarkable comeback this month, surging 10% from $0.24 to $0.27 and shaping up a very optimistic bullish channel. The rally fired up investors, as evidenced by increased network activity and open interest. 

Yet, despite the mounting interest from market participants, Cardano’s fortune remains tethered to Bitcoin. After BTC tumbled through the $27,000 and $28,000 price levels, Cardano followed suit, erasing its gains and pointing its hull toward the yearly lows at $0.21. 

Investors now remain on edge, monitoring each candle, wondering if ADA will bounce back. With CPI and PPI figures coming out higher than expected, hopes of a resurgence by year-end have grown dim, casting a shadow on ADA’s prospects. 

Charles Hoskinson Claps Back at Claims of Dishonesty

The crypto community recently criticized Charles Hoskinson for being dishonest and misleading in claiming Hydra could achieve a throughput of one million transactions per second (TPS). 

The Cardano founder stepped up to quell the storm of accusations, coming up with a dossier of source material dating back to 2020, all aimed at substantiating his earlier claim that the Layer-1 protocol could help soar Cardano’s throughput beyond one million TPS. 

To bolster his position further, the founder then pointed to an array of research papers and esteemed journals, concluding everything he said had source material, be it blog posts, simulations, or papers written by people who are held to high standards.  

Impersonation Scams on the Rise

Recently, a wave of Cardano-related scams has surfaced on Twitter, promising significant amounts of ADA and equity while impersonating prominent Cardano influencers. These schemes have multiplied in the past few weeks, leaving users vexed about the surge of scam airdrops despite Twitter claiming a 90% reduction. 

At press time, some of Cardano’s biggest influencers, including ADA Whale and Rick McCracken, have been targeted. Both influencers have distanced themselves from the scam, claiming they would never promote anything that would take user money. 

Charles Hoskinson Butts Heads with XRP Community

The XRP community believes that the Ethereum development team bribed the SEC to go after Ripple. Having his say on the matter, Charles Hoskinson rejected the ETHgate theory, arguing that corruption didn’t drive government actions but rather favoritism. 

The founder received backlash from the XRP community, including Ripple CTO David Schwartz, who contended, “I would argue that a government actor showing favoritism aligned with the personal interests of themselves and their friends is corruption.”

Cardano Privacy Sidechain Midnight Lands on DevNet

Cardano’s privacy-centric sidechain, Midnight, has finally made its DevNet debut and is ready to host an exclusive group of developers and testers to delve into its treasure trove of innovative features. 

Branded as ‘the first 4th generation blockchain’ by Charles Hoskinson, the Cardano founder tried to stir up excitement for the sidechain. However, the community’s reactions remained mixed, brimming with questions.

While Hoskinson touched upon Midnight’s necessity and potential impact on the industry, critical details were left in the shadows, such as its native token DUST, regulations, tokenomics, and more. 

Cardano’s First Fiat-backed Stablecoin Nears Launch

Mehen Protocol, the brains behind Cardano’s first fiat-backed stablecoin, has achieved a major milestone as it sets sights on a mainnet launch by year-end. According to CTO Steven Fisher, after reaching out to 49 state regulators in the US, USDM has earned the nod of approval from 12 states, paving the way for a pre-production launch this November and a full mainnet launch by December. 

Cardano’s Hoskinson Scoffs at Network Centralization Rumors 

Cardano recently came under fire from the crypto community for being too centralized. The crypto consensus accused IOG of holding excessive power in the network’s governance using Genesis Keys. 

In response, Charles Hoskinson shed light on the inner workings of Cardano, explaining that the arrangement had been in place since 2019. He added that the keys were initially introduced to manage system parameters and initiate hard forks. Hoskinson revealed that the Genesis Keys were distributed among the founding entities – IOG, Emurgo, and Cardano Foundation, which collectively greenlit update proposals through a well-defined system. 

The contentious founder asserted that the former system lacked clarity, which is why Cardano introduced CIP-1694, aiming to usher in a new era of governance where a constitutional committee would formalize governance actions. 

Concluding his thoughts, Hoskinson emphasized the meticulous research surrounding CIP-1694 made it the best path forward for Cardano’s governance. The Cardano founder boldly asserted that if CIP-1694 doesn’t pass, he’s prepared to burn the Genesis keys and allow other entities to take the helm in making a better governance framework. 

Current Outlook

ADA exchanged hands at $0.246 at the time of writing, dropping 10% over the past week. Cardano’s downtrend has instilled investors with fear. This was particularly evident in investor sentiment, which remained predominantly bearish across the exchange, derivatives, and on-chain markets at the time of writing. 

The rising apprehension was also reflected in Cardano’s long-to-short ratio flipping from positive to negative, signaling a considerable surge in investor selling. 

With macro conditions on the bearish side, ADA could move toward the next liquidity range at $0.23 in the following weeks and ultimately toward the yearly lows at $0.21. As the battle for dominance over ADA’s price action continues, the community is on the edge of its seats, eagerly awaiting the next candle.

On the Flipside

• Cardano has only grown by 1% this year, whereas its rivals Ethereum and Bitcoin have an average of 47% gain. 
• IntotheBlock reports that over 95% of ADA holders remain in losses. 
• Market dynamics can be unpredictable, so it is essential to consider alternative perspectives and opinions when evaluating the potential future performance of ADA.
• Charles Hoskinson’s unrelenting optimism about Cardano’s developments raised skepticism in the crypto community, with some labeling him as dishonest; he countered by insisting that every claim he made had a source.
• Midnight’s official website had no links to a white or yellow paper. 

Why This Matters

Charles Hoskinson’s unwavering resolve in the face of these controversies is a testament to Cardano’s resilience and the unwavering strength of its leadership. His ability to address concerns transparently and adapt to evolving circumstances underscores the network’s commitment to continual improvement. Clearly, Cardano is not immune to criticism. How it responds and evolves truly matters. 

Read the last Cardano regular:
Cardano Regular: ADA Bulls Resurge at Crucial Level, Community Unimpressed With Catalyst Winners, and More

Beware of scammers impersonating Cardano influencers:
Cardano Scammers Impersonate Influencers: How to Stay Safe