- Charles Hoskinson has called for the dissolution of the Cardano Foundation following theft allegations.
- A forensic audit cleared Hoskinson and insiders of misappropriating 300M ADA tokens.
- Allegations and internal friction could weigh on ADA’s market sentiment.
- Despite fear in the community, on-chain data suggests a potential price recovery.
Cardano $600M Scandal Sparks Leadership Clash
The Cardano (ADA) ecosystem is once again under the spotlight after fresh friction emerged between its founder, Charles Hoskinson, and the Cardano Foundation (CF). Allegations of a $600 million ADA theft have triggered heated debates, with Hoskinson now calling for a “vote of no confidence” against the Foundation’s leadership.
Speaking in a recent X (formerly Twitter) space, Hoskinson accused the CF of “ruining the integrity” of the Cardano ecosystem. He proposed drastic measures, including possible legal action in Switzerland, to force the CF board’s removal.
“At some point, we, as the ecosystem, have to hold them (CF) accountable,” Hoskinson stated, suggesting that CF funds should be redirected to Cardano’s treasury or other entities supporting the network.
Audit Clears Hoskinson, But Community Remains Divided
The controversy stems from allegations that Hoskinson and early insiders misappropriated over 300 million ADA tokens, valued at $600 million when the story surfaced. According to Hoskinson, the claims originated from employees within the Cardano Foundation.
Also Read: Cardano Founder Charles Hoskinson Predicts Bitcoin Could Hit $10 Trillion Market Cap
To counter the accusations, an independent audit was commissioned. The final report concluded that:
“The investigation determined that each of the allegations related to the topics of investigation does not have any basis.”
The report further clarified that unredeemed ADA from early investors was directed to Intersect, a trust fund overseeing Cardano’s roadmap with contributions from Input Output and EMURGO.
While the findings clear Hoskinson of wrongdoing, his harsh criticism of the Foundation for spreading “falsehoods” and failing to fund the audit could deepen community divisions.
Will ADA Sentiment Suffer Amid Chaos?
Beyond leadership drama, the scandal’s impact on ADA’s market sentiment is now under scrutiny. On-chain analytics firm Santiment noted that Cardano’s once-optimistic community has shifted to fearful and bearish territory.
However, historical patterns suggest the opposite could play out. Santiment observed that markets often move against the crowd’s expectations, implying that ADA could see short-term relief rallies.
Technical levels also highlight potential areas of liquidity. On the downside, liquidity clusters sit around $0.80 and $0.76, while the upside shows key zones at $0.85 and $0.90 that could attract price action.
The latest scandal underscores growing tensions within the Cardano ecosystem. While Hoskinson’s push for a “vote of no confidence” could shake investor confidence in the short term, the independent audit’s findings may restore some credibility. For traders and investors, ADA’s price action now hinges on whether sentiment-driven sell pressure outweighs potential contrarian market moves.
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