Charles Hoskinson Slams ‘Baseless’ Claims of Diverting Cardano Funds - Crypto Economy
TL;DR A stake pool operator accused Hoskinson of taking money from the Cardano treasury. Hoskinson criticized the Cardano Foundation for proposing cuts to IOG’s development budget. The IOG founder...
TL;DR
- A stake pool operator accused Hoskinson of taking money from the Cardano treasury.
- Hoskinson criticized the Cardano Foundation for proposing cuts to IOG’s development budget.
- The IOG founder highlighted the “Midnight” project as the most transformative in Cardano’s history.
Charles Hoskinson, founder of Cardano and CEO of Input Output Global (IOG), has responded harshly to recent accusations labeling him with embezzlement. A stake pool operator (SPO) accused the CEO of taking money from the ecosystem’s treasury to fund his personal projects.
The controversy generated debate within the community, with many questioning why the SPO singled out Hoskinson while the Cardano Foundation generates profits from staking ADA.
For his part, Hoskinson called the accusations ironic, expressing his frustration at being portrayed as the ecosystem’s antagonist while the Foundation is praised. He criticized what he considers an inconsistent and negative narrative from certain sectors of the community.
This controversy uncovers a deeper conflict between Cardano’s two main entities. Hoskinson denounces that, despite his contributions, he is blamed for the project’s problems.
Tension between IOG and the Cardano Foundation
The friction between IOG and the Cardano Foundation is not new, especially regarding the allocation of treasury funds. A recent example is the Foundation’s proposal to cut 31 million ADA from the 2025 ecosystem budget.
According to Hoskinson, these cuts primarily targeted the core development funding allocated to IOG, which he interpreted as an attempt to undermine his company’s efforts.
Hoskinson has also criticized the Cardano Foundation’s unelected board for its, in his opinion, lack of accountability.
Despite the internal conflicts, Hoskinson remains steadfast in promoting Cardano’s future, highlighting the potential of the Midnight project, a privacy-oriented blockchain. He recently called it the “most transformative project in Cardano’s history.”
Hoskinson emphasized that Midnight’s partnerships (which include Brave, Bitcoin.com, and Google Cloud) are crucial, since, as it is a Cardano-native token, whoever adopts Midnight also adopts the Cardano ecosystem. Meanwhile, the ADA token has suffered in the market, losing key support levels and falling below $0.66.
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