HomeCryptoCardano founder predicts more damage from the FTX crisis

Cardano founder predicts more damage from the FTX crisis

Charles Hoskinson, the founder of Cardano, in a recent interview showed his deep concern about the crisis that has hit the FTX exchange platform. His statements are very pessimistic. 

Indeed, according to Hoskinson, the near future for cryptocurrencies will see even more slumps and adversity. 

According to Cardano’s founder, regulatory scrutiny will increase from this point on

The crisis of FTX, brings with it several problems for the blockchain and cryptocurrency ecosystem, which not only affect Sam Bankman Fried‘s exchange platform, but problems that affect everyone. 

To begin with, in his most recent interview, Charles Hoskinson touches on a really important point, that of regulatory controls. In fact, the founder of Cardano talks about a real revolution in the regulatory system revolving around the crypto world. Explaining that it will most likely bring several companies in the industry into crisis. Thus, the FTX affair is just the tip of the iceberg of something that will soon see everyone involved. 

However, Charles Hoskinson himself does not see this crisis as a failure of crypto or the crypto world, but rather merely mismanagement by some people: 

“Cryptos have not failed. People have failed. People in positions of trust. At the end of the day, as much as we like to believe in the principles of cryptocurrency, this has everything to do with people putting their money into centralized exchanges and organizations trusting centralized companies to do something on their behalf.”

There will definitely be a new crypto legislature in the works, which will see only the strongest and most resilient at the top. 

“I think this may be the bottom, one of the last problems to be addressed. It will be hard to predict how bad it will be, and it could certainly be potentially very bad. There are not many other companies that were like FTX or Alameda or like, Three Arrows Capital and so on.”

The words of Charles Hoskinson, founder of Cardano despite sounding desperate, also have a glimmer of hope. Indeed, he explains in the interview that this could be one of the last major crises that the cryptocurrency and blockchain world will see. 

Corroborating Hoskinson’s thesis is former Microstrategy CEO Michael Saylor, who sees the FTX crisis as a potential pretext for more regulatory scrutiny, further explaining, that if there is any overly aggressive scrutiny, the entire industry could suffer. 

Only big projects will stand 

Charles Hoskinson, founder of Cardano, says that only those that have a large project standing behind them will have the strength to withstand this crisis. There are projects in the industry that have experienced a lot of adversity, both in bearish and bullish years, and have been resilient enough to survive any crisis. 

Speaking to Cointelegraph at the Web Summit technology conference in Portugal on 2 November, Hoskinson said he has witnessed the collapse of many companies in the cryptocurrency industry, from Silk Road to Mt. Gox:

“Just because you’re on top today, you won’t always be on top. The big cryptocurrencies have to go through several crashes. I was in Bitcoin when it was below the dollar, and I saw it go from $1 to $30, to $40, to $256, to $80, to $1,200, to $250, to $20,000, to $4,000, to $64,000, and now it’s down to $20,000, more or less. I’ve watched all this and I’ve seen all the companies come and go.”

Cardano (ADA) is under the eye of the whales and seems to remain untouched by the crisis

While there is a storm outside caused by the FTX crisis, Cardano remains stable and sees a sudden interest from whales. According to WhaleStats, the ADA token ranks among the top 10 assets purchased by the 100 largest BSC whales in the past 24 hours. 

In addition to this, Cardano is seeing an increase in its on-chain activity, with 400% growth in new wallet addresses on the network.

Charles Hoskinson, its founder, has been more than happy with Cardano’s stability and growth, inviting anyone who wants to participate: 

“The Cardano community is a pretty bullshit-free zone, and we invite all other well-meaning groups to work with us.”