Cardano chief's casual tag leads to crypto chaos

Even minor actions can have serious consequences in the lightning-fast world of cryptocurrency. With this context in mind, consider the story of Charles Hoskinson, founder of Cardano, whose latest social media update triggered an ugly event in the cryptocurrency market. 

Recently, Hosinkson encountered controversy following a post in which he referred to his dog as Freya. Since then, a minor battle has erupted in which Hosinkson is well-versed in specifics and firm opinions. The furry incident occurred quickly in what has been dubbed “Hoskinson’s Furry Fiasco.”

Hoskinson shared an endearing story on the social media platform on December 10, featuring his pet Freya. Hoskinson showcased an endearing image of Freya, tagged as “@FreyaHoskinson,” alongside the post. He didn’t realize his modest gesture would create a crypto craze. Opportunistic people immediately jumped on the label, pushing Freya, a pooch-inspired meme coin previously unknown in the Cardano community.

The creators of the Freya meme updated their Twitter handle from @FreyaHosk to @FreyaHoskinson. While the alteration was minor, it provided the impression that Hoskinson had approved their project. It made an instant and powerful impact. Over one million people in Hoskinson’s fanbase rushed into Freya token investments under the impression that their idol had immediately backed the token.

As a result, the price of Freya skyrocketed, with dexscreener statistics indicating an 800% increase in the token’s worth. Nonetheless, this bubble was short-lived. The token’s value plummeted in less than 15 minutes, wiping out all profits and creating severe financial losses for investors who traded during the boom.

The crypto community responded vehemently to these happenings. In this regard, many people criticized Hoskinson for his carelessness about labeling the accounts, which underlined the need for significant personalities to take caution in social media relations.

Hoskinson removed the disputed post after the controversy and explained his actions via Twitter. He stated clearly and unmistakably that he was in no way associated with the Freya token or any of the NFT projects that were said to be influenced by his personal life. Hoskin spoke about liking some of the artwork with dogs but clarified that this is only an emotional issue, and he did not sponsor any projects on this material.

Surprisingly, this was not the first time Hoskinson’s actions generated a ripple in the crypto market. He had previously inquired about a Cardano meme coin known as SNEK, which drove its price to skyrocket.

Currently, there are approximately 400 holders, with approximately 350 on Ethereum and 50 on Cardano. This is a crucial lesson in the importance of celebrities and their responsibilities in the digital currency world. 

Performing proper checks on any item published or tagged on such financial platforms is crucial, as a single inference can create large movements. These examples show how influencers must tread cautiously to avoid creating misleading expectations by spreading unfounded rumors, which can result in unpredictable but damaging market behavior.