In a recent interview with Discovery Crypto, Charles Hoskinson, co-founder of Cardano, shared his thoughts on the current state of the crypto space and the future of the Cardano network. This interview sparked a discussion about Cardano’s relationship with crypto exchanges and other figures in the industry. There also seemed to be a suggestion that there is a coordinated effort to minimize Cardano’s impact.
During the discussion, Charles Hoskinson expressed that many players in the crypto space “fear” Cardano because they believe the project is “doing everything right.” Factors such as liquid staking and the growth of the network without Venture Capital (VC) funding make Cardano stand out. This fear may be the reason why stablecoins like USDC are not on the Cardano blockchain. It seems that there is a lack of desire to engage with the blockchain and its projects.
Concerns About Asset-Backed Stablecoins
Charles Hoskinson shared his concerns about asset-backed stablecoins, stating that he doesn’t like them and considers them “not crypto.” Despite the fact that a significant amount of real money velocity and value transactions happen on-chain through stablecoins, Hoskinson sees their centralized nature as a concerning matter. He believes that asset-backed stablecoins give control over the crypto space to a few entities, including centralized exchanges and ETFs. This concentration of power goes against the decentralized nature of cryptocurrencies.
The current developments in the crypto space have raised concerns for Cardano’s founder. He believes that the industry is moving in a direction opposite to the original mission of cryptocurrencies, which is financial freedom. Instead, a handful of regulated entities are gaining “soft power” and controlling the value and volume of the crypto industry. This goes against the goal of taking down banks and legacy financial systems.
To address his concerns, Charles Hoskinson and the Cardano team have extensively researched algorithmic stablecoins. They see these stablecoins as a potential solution that is more aligned with the decentralized nature of the crypto industry. While asset-backed stablecoins may be inevitable, Hoskinson believes that addressing these concerns is necessary to ensure the long-term decentralization of cryptocurrencies.
In a lighthearted moment, Charles Hoskinson compared Cardano to the American singer Taylor Swift. He joked that, like Swift, Cardano could go from being a smaller and niche project to a globally recognized and mainstream figure with a significant impact on the world. While currently not as well-known as Taylor Swift, Hoskinson expressed his desire to become the “Taylor Swift of Blockchain.”
The state of Cardano is a topic of both excitement and concern. While the project has gained attention and respect within the crypto space, there also seems to be a coordinated effort to minimize its impact. The concerns about asset-backed stablecoins and the tendencies towards centralization in the industry are valid points of discussion. However, Cardano’s founder is actively addressing these concerns through research on algorithmic stablecoins. Only time will tell if Cardano can achieve its goal of becoming a globally recognized and impactful project in the crypto world.