Charles Hoskinson, the founder of Cardano blockchain, recently commented on an article written by CoinDesk regarding the alleged layoffs he implemented in order to revamp into a smaller Venture Studio model.
Below are all the details.
Summary
The words of the founder of the Cardano blockchain
These are the words of Charles Hoskinson, founder of the Cardano blockchain, regarding a recent article written by CoinDesk. Specifically, the article refers to layoffs of “an unspecified number of employees.”Â
Thus, the critical issue for Hoskinson is in how the story is reported, as if it were a narrative of simple layoffs without getting to the core of the issue he explained in the recent tweet.
In addition, Hoskinson also shared his long-term perspective for the company, pointing out that it is expected to create an average of 3 to 5 companies each year.
With this new business model, strategy and business aspects will not be managed centrally, but will be delegated to spinout companies led by dedicated CEOs.
So, this approach will allow IOG to focus on its core business while exploring new initiatives that will benefit both the company and its customers in the long run.
Focus on the price of Cardano (ADA)
Last week, the value of Cardano declined significantly against the US dollar, falling well below $0.350. The ADA/USD pair broke through support levels of $0.32 and $0.30, entering a bearish trend.
At present, however, the price is experiencing a correction of losses. Indeed, there has been a movement above the resistance levels of $0.245 and $0.250.
The price has exceeded the 23.6% Fibonacci retracement level of the bearish movement, ranging from the high of $0.3820 to the low of $0.2300.
At present, the ADA price is trading below $0.30 and the 55-period simple moving average (on a 4-hour chart). On the upside, immediate resistance is around the $0.278 area.
In addition, a key bearish trend line is forming on the 4-hour chart with resistance near $0.278.
The next significant resistance is around the $0.300 level or the 50% Fibonacci retracement level of the bearish movement, which runs from the swing high of $0.3820 to the low of $0.2300.
It follows that a clear break above the $0.300 resistance could trigger a sharp rise in price. In that case, the price could head toward the $0.350 resistance.
On the downside, immediate support is around the $0.260 level, while the next major support is around the $0.250 level. A clear break below $0.250 could push the price toward the $0.220 level.
Further losses could push the price toward the $0.212 support, and thereafter the bears could aim to test the $0.200 level.
Hoskinson responds to Bill Morgan’s tweets
In a series of tweets, both Ripple CTO David Schwartz and the founder of the Cardano blockchain, Charles Hoskinson, raised objections to the SEC’s classification of ADA as a security during the current restrictive regulatory climate.
Hoskinson and Schwartz’s objections were prompted by tweets from Bill Morgan, a lawyer known for his support of XRP.
In his recent tweets, Morgan expressed skepticism about the SEC’s argument, questioning the validity of the agency’s claim that seems to ignore the transformative nature of technological progress and innovation in the cryptocurrency industry.Â
Focusing on one section of the charge filed by the SEC, Morgan pointed out that the agency’s argument is based on the idea that ADA is a security because of IOHK’s efforts in improving Cardano’s blockchain and published blogs.
Accordingly, Charles Hoskinson and David Schwartz evaluated Morgan’s argument and provided details on recent developments.
Hoskinson specifically sought to shed light on the situation regarding ADA’s initial coin offering (ICO), providing important clarifications for cryptocurrency enthusiasts.
Indeed, he pointed out that ADA’s ICO took place in Japan and did not involve the direct sale of ADA tokens, but instead used vouchers, targeted marketing strategies, and prices denominated in yen and Bitcoin.
