Cardano founder throws shade at crypto critics: defends crypto firms’ resilience
Charles Hoskinson, the founder of Cardano, has taken aim at critics of the cryptocurrency industry in a recent tweet. In his tweet, Hoskinson compared the operations of major cryptocurrency firms such as Circle, Paxos and Tether to those of banks, stressing that these firms have been able to persevere in conditions that have caused banks to fail.
Hoskinson pointed out that firms like Circle, Paxos and Tether have security mainly in cash and government bills, but the government considers cryptocurrency super risky. In contrast, the banks have collateral mostly in traditional financial bonds with longer dates, and when they fail, the authorities still blame cryptocurrency.
Members of the cryptocurrency community weighed in on Hoskinson’s tweet, with some expressing their support for his sentiments. One member highlighted that the Federal Reserve Board eliminated reserve requirements for all depository institutions, which suggests that the government is not entirely transparent about the handling of the financial system.
Others pointed out that while crypto is risky because centralized stablecoins still rely on traditional financial and fractional reserve banks, Cardano and other decentralized financial projects like $Djed can fix this problem. Another member joked that it is good that Hoskinson and Cardano keep investors on their toes and keep their investments safe.
The sentiment among the cryptocurrency community is that traditional finance is not as reliable as it once was, and decentralized finance is the future. As one member put it, they cannot stop investors’ slowly evolving ability to hold traditional financial institutions accountable for their plays.
However, Hoskinson’s tweet is a reminder that the cryptocurrency industry is here to stay and that traditional financial institutions must adapt to changing times. Decentralized financial projects such as Cardano and $Djed pave the way for a more transparent and reliable financial system that can withstand market pressure and government regulations.
Cardano founder backs algorithmic stablecoins
Charles Hoskinson, the founder of Cardano, recently expressed his belief in the long-term importance of algorithmic stable coins to realize the original vision of Bitcoin.
Hoskinson’s comments came in response to a recent tweet by Kraken co-founder and CEO Jesse Powell, who noted that the USDT stablecoin had “detached” to the upside, currently worth $1.06, while USDC had fallen to $0.89 .
Hoskinson answered Powell’s tweetand says he remains convinced that algorithmic stablecoins are the essential research stream to realize the original vision of Bitcoin.
He further commented that banks will always fail you as long as they are fractional, indicating his belief that traditional financial institutions may not be reliable in the long run.
Related Reading | Crypto chaos looms: IMF warns G-20 about dangers of widespread adoption
