Charles Hoskinson defends Cardano against assertions that it has lost favor with institutional investors.
Hoskinson dismisses these concerns, stressing that cryptocurrencies aim to disrupt traditional finance rather than seek institutional endorsement.
Charles Hoskinson, the founder of Cardano, has responded to comments from crypto influencer Ben Armstrong, also known as BitBoy, who suggested that Cardano (ADA) and Polkadot (DOT) no longer attract institutional interest.
On July 3, Armstrong reiterated his controversial views, originally expressed in an April YouTube video, claiming that Cardano and Polkadot are now ‘dead’ in the eyes of institutional investors. Armstrong argues that these projects lack the institutional support enjoyed by Ethereum (ETH) and Solana (SOL), suggesting that while ADA and DOT may see some gains, they won’t match those of coins favored by institutions.
“I want to clarify. Recently, I said $DOT & $ADA are both dead to institutions. Which ultimately will lead to their death as legitimate investments. This DOES NOT mean they won’t pump and offer returns to investors in this bull run. They will. Returns will just be mid.” – Ben Armstrong aka BitBoy Crypto (@BenArmstrongsX) July 3, 2024
Armstrong explained that as investors turn to newer projects, the potential for higher returns increases, potentially making it harder for existing projects like Cardano to attract significant investment in the future.
Hoskinson’s Swift Response
In response, Hoskinson swiftly countered Armstrong’s views, emphasizing a fundamental aspect of cryptocurrencies. He highlighted that cryptocurrencies aim to challenge and overthrow traditional institutions rather than seek their approval.
“I guess I got to learn the banjo to make Ben happy,” Hoskinson sarcastically tweeted, suggesting a misconception about the true nature of cryptocurrencies. He pointed to upcoming innovations such as layer-2 scaling solutions like Hydra and partner chains including Midnight and Prism, which he believes will strengthen Cardano’s market position. Hoskinson’s rebuttal underscores his commitment to Cardano’s original vision and its potential within the cryptocurrency space.
Criticism of Cardano
Armstrong isn’t the only one critical of Cardano. In February, former BitMEX CEO Arthur Hayes harshly criticized ADA, dismissing its relevance and questioning the demand for dApps on the Cardano blockchain.
“Notably, Vanessa Harris, a crypto analyst previously critical of Cardano’s governance, recently extended an olive branch to the Cardano community. On July 2, Harris tweeted her intention to continue supporting the community by holding onto her ADA rather than selling, expressing optimism for the ecosystem’s growth.
“I’d like to apologize to the Cardano community. I’ve been overly harsh in my criticism of the ecosystem. In the last six months, I became increasingly concerned about what I view as existential issues for Cardano,” she stated.
Market Performance and Community Response
Despite the controversy, Cardano has shown positive movement in the market. As of Saturday, Cardano was trading at $0.3578, marking a 3% increase for the day. This uptick boosted Cardano’s market capitalization to $12.6325 billion, representing 2.87% of the total cryptocurrency market cap.
However, the past week has seen less favorable performance, with Cardano experiencing a 10.31% decline in value. Trading volumes have also been significant, with $367.5197 million worth of Cardano traded in the past 24 hours, reflecting a 51% decline within that period. These fluctuations underscore the ongoing volatility and debate surrounding Cardano’s long-term prospects.
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