Cardano Founder Defends Altcoins Against Michael Saylor’s Claims

Charles Hoskinson, founder of Cardano, criticizes Michael Saylor’s view that only Bitcoin is a commodity, not other cryptocurrencies like Ethereum, XRP and Cardano.

Tensions between Bitcoin maximalists and proponents of other cryptocurrencies have come into sharp focus. Charles Hoskinson, the founder of Cardano, recently voiced his concerns about the dismissive attitude of Bitcoin maximalists towards other cryptocurrencies in the wake of Michael Saylor’s recent remarks.

Bitcoiners: "Why is Charles attacking Bitcoin? Altcoiners are so Toxic."

Bitcoin Maxi's: "Literally everything but Bitcoin is illegal and a scam" https://t.co/Fd0fYyLWjn

— Charles Hoskinson (@IOHK_Charles) May 3, 2024

Hoskinson noted that Bitcoin proponents brand enthusiasts of other cryptocurrencies as toxic, with a penchant for attacking them but fail to realize that their constant dismissive comments against altcoins are responsible for triggering these responses.

Hoskinson’s Critique and Saylor’s Stance

Saylor, executive chairman of MicroStrategy, suggested that all cryptocurrencies other than Bitcoin, including Ethereum, Ripple’s XRP, Solana, Binance Coin, and Cardano, are likely to be treated as unregistered securities rather than commodities. 

He expressed skepticism regarding the approval of ETFs based on these cryptocurrencies, predicting institutional investors and Wall Street might continue to shun them.

Saylor’s comments followed the SEC’s approval of multiple Bitcoin ETFs earlier this year, sparking debates about the regulatory future of other cryptocurrencies.

The SEC’s Deliberation on Ethereum ETFs

Amidst these controversies, the U.S. Securities and Exchange Commission (SEC) is deliberating on proposed spot Ethereum ETFs by Grayscale and Franklin Templeton. The decision, initially expected soon, has been deferred to June 11, 2024. 

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Notably, the SEC stated the need for additional time to consider the proposed rule changes and address raised concerns adequately. However, recent reports suggest that the securities regulator might be looking to brand some Ethereum offers as securities.

Interestingly, despite the uncertainty surrounding the regulatory status of Ethereum, Larry Fink, CEO of BlackRock—one of the entities aiming to launch a spot Ethereum ETF—remains optimistic. He believes that even if the SEC categorizes ETH as a security, the possibility of an Ethereum ETF going live still exists.

Community Reactions to Crypto Maximalism

The crypto community has also reacted strongly to the maximalist positions, with influencers like the XRP YouTuber Moon Lambo criticizing the toxic nature of maximalism and questioning the sincerity behind Saylor’s assertive claims. 

Robert Sasu, core developer at MultiversX, echoed this sentiment, highlighting the negative impact of such attitudes on the broader crypto ecosystem. Sasu emphasized the potential of blockchain technology beyond mere store of value, advocating for collaboration and innovation rather than destructive criticism.