Cardano

Reddit

Nano

XRP 2

<div class="finbold">
 <p class="paragraph">Charles Hoskinson, the creator of Cardano (ADA) and co-<a rel="noopener noreferrer nofollow" title="founder" href="https://thebittimes.com/tag/founder.html">founder</a> of IOHK, raised an alarm in a recent <em>YouTube</em> stream. His message was clear: traditional financial institutions are infiltrating the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency sphere, potentially undermining its founding principles.</p>
 <p class="paragraph">Broadcasting live on February 12, Hoskinson spoke about the existential concerns he believes are not fully appreciated by mainstream cryptocurrency enthusiasts. Notably, he posited that the industry faces a turning point, emphasizing the dominance of asset-backed stablecoins like USDT and USDC.</p>
 <p class="paragraph">Additionally, Cardano’s founder criticized the recent celebration of spot Bitcoin ETFs and Wall Street’s possible growing influence.</p>
 <h2 class="wp-block-heading" id="h-asset-backed-stablecoins-and-their-inherent-risks">Asset-backed stablecoins and their inherent risks</h2>
 <p class="paragraph">Hoskinson explained these stablecoins’ significant role by sharing data highlighting their contribution to 70% of on-chain transaction volume, overshadowing cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC).</p>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picked for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Peter Schiff says Bitcoin might hit $100k <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Dormant Ripple wallet wakes up to dump another 100 million XRP <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    We asked ChatGPT what will be Bitcoin price after 2024 halving <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    6 cryptocurrencies under $0.01 to buy this week <span class="self-center text-xs text-slate-500">2 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <figure class="wp-block-image size-full"><img decoding="async" width="994" height="448" src="https://cdn.thebittimes.com/images/2024/02/15/abfb60e72debaab22f4d7af47cb12230.webp" alt class="wp-image-155035" srcset="https://cdn.thebittimes.com/images/2024/02/15/abfb60e72debaab22f4d7af47cb12230.webp 994w, https://cdn.thebittimes.com/images/2024/02/15/abfb60e72debaab22f4d7af47cb12230.webp 300w, https://cdn.thebittimes.com/images/2024/02/15/abfb60e72debaab22f4d7af47cb12230.webp 768w" sizes="(max-width: 994px) 100vw, 994px">
  <figcaption class="wp-element-caption">
   Relative on-chain transaction value, USD terms. Source: <em>Charles Hoskinson</em>
  </figcaption>
 </figure>
 <p class="paragraph">Moreover, he pointed out the centralized nature of asset-backed stablecoins, subject to regulation by their issuing jurisdiction.</p>
 <p class="paragraph">Essentially, the ramifications of relying on these stablecoins, according to Hoskinson, are profound. They influence decentralized finance (DeFi) economies and can dictate outcomes in the event of blockchain forks. Essentially, an asset-backed stablecoin cannot exist on multiple forked chains without devaluating its backing.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“With a hard Fork, let’s say, there’s Bitcoin splitting and there’s ‘Bitcoin A’ or ‘Bitcoin B’ (…) You can’t have a situation where the stablecoin issuer says ‘I’m going to let my stable coin be on both sides and we’ll just let it ride,’ because doubling the supply means that they’re only backed by $0.5. They have to pick a winner. They either pick A or they pick B. A or B but not both. They can’t pick both by design.”</p> <cite>– Charles Hoskinson, Cardano founder</cite>
 </blockquote>
 <h3 class="wp-block-heading" id="cardano-founder-suggests-using-algorithmic-stablecoins">Cardano founder suggests using algorithmic stablecoins</h3>
 <p class="paragraph">Charles Hoskinson contrasted this with algorithmic stablecoins, which he asserts are inherently compatible with cryptocurrency’s decentralized ethos. In this context, on-chain algorithms supposedly govern these stablecoins, not beholden to a central entity that could manipulate outcomes in their favor.</p>
 <p class="paragraph">However, Colin LeMahieu, creator of Nano (XNO), raised concerns about algorithmic stablecoins’ technical aspects and economic fundamentals. In his opinion, having a reliable algorithm stablecoin is impossible or, at best, “is unfair, where the treasury has asymmetric price information.”</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
    <p lang="en" dir="ltr">“Algorithmic stable coin” is the perpetual motion machine of economics. Yes, it would be desirable though it’s demonstrably impossible.<br><br>Their viability can be disproven starting in absolute terms and then weakening requirements (shifting the goal post) as advocates usually do.… https://t.co/ZQVBqNS5Pd</p>— Colin LeMahieu (@ColinLeMahieu) February 14, 2024
   </blockquote>
  </div>
 </figure>
 <p class="paragraph">Particularly, it is worth remembering that Terra’s (LUNA) collapse occurred due to issues with its algorithmic stablecoins UST in 2022.</p>
 <h2 class="wp-block-heading" id="cardano-founder-urges-the-crypto-community-to-focus-on-the-underlying-principles-of-cryptocurrency">Cardano founder urges the crypto community to focus on the ‘underlying principles of cryptocurrency’</h2>
 <p class="paragraph">Despite these insights, Hoskinson expressed frustration at the community’s focus on profit rather than the underlying principles of cryptocurrency. He chastised <em>Reddit</em> users who criticized his stance, pointing to their single-minded concern with “number-go-up” and overlooking the broader existential risks.</p>
 <p class="paragraph">Further, Cardano’s founder cautioned about the increasing influence of Legacy financial actors within the crypto world. He noted that large ETFs and centralized exchanges now wield considerable power over the direction of cryptocurrencies. These actors could effectively control the industry through their decisions on listings, liquidity, and support for certain chains.</p>
 <p class="paragraph">Charles Hoskinson didn’t mince words: he did not sign up for a <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> revolution that capitulates to a handful of Legacy companies. He urged the community to remember why blockchain and <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies emerged—to offer an egalitarian, transparent, censorship-resistant alternative to traditional finance.</p>
 <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
  <div class="wp-block-embed__wrapper"><iframe title="Legacy is Eating Crypto" width="500" height="281" src="https://www.youtube.com/embed/VbhvlEif2Iw?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
  </div>
 </figure>
 <p class="paragraph">In closing, the Cardano <a rel="noopener noreferrer nofollow" title="founder" href="https://thebittimes.com/tag/founder.html">founder</a> called on industry participants to reflect on their values and decisions. He warned that without maintaining vigilant stewardship over the decentralization and integrity of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies, they could become indistinguishable from the traditional financial systems they aimed to replace.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/cardano-founder-warns-of-legacy-eating-crypto-tbt79841.html">https://thebittimes.com/cardano-founder-warns-of-legacy-eating-crypto-tbt79841.html</a></p>

Cardano founder warns of ‘legacy eating crypto’

Table of Contents

TheBitTimes

Other articles published on Feb 14, 2024

XRP Price Prediction: A Fresh Rally Is Around The Corner?

Why is the Crypto Market Up Today?

CoinMarketCap Releases Analysis on APENFT's Pioneering Efforts to Register Real-Word Masterpieces...

White hat crypto hackers unite to create crime fighting collective

Valentine’s Day Sees Rise in Crypto Romance Scams

Polygon (MATIC) Sees Healthy Double Digit Profits While Avalanche (AVAX) Investors Buy Up Web3 Ke...

Join our free newsletter for daily crypto updates!