- Cardano Founder Charles Hoskinson went to the X platform to express his frustration with the misinformation being spread, especially about the ADA staking system.
- The ADA community has reiterated these claims, asserting that Cardano staking has always been liquid and non-custodial.
Cardano founder Charles Hoskinson has expressed frustrations over the heightened level of misinformation surrounding ADA. In a recent post on the X platform, Hoskinson highly refuted the rumors escalating about Cardano’s staking mechanism to what he described as “lies and misinformation.”
The latest controversy that sent him over the edge is from a rumor suggesting that Cardano’s substantial market value stemmed from investors being unable to sell their ADA holdings allegedly locked “in” staking pools. This rumor emanated from a podcast featuring prominent crypto commentators InvestAnswers, CTO Larsson, MartyParty, and Mando.
The lies and misinformation about Cardano have reached epic levels. Stake isn't locked, but they still lie.
Why does anyone trust these people anymore? https://t.co/8eh3LdoSw1
— Charles Hoskinson (@IOHK_Charles) September 11, 2024
InvestAnswers raised skepticism about why old crypto projects like Cardano still maintain a $12 billion strong market dominant share stating that in is view the project lacked real-world adoption.
MArtyParty added fuel to the fire when he voiced in a rather skeptical tone about the project. According to Marty, ADA holders are unable to sell their ADA assets because they are locked in staking pools. On top of that, he accused the Cardano team of using the staking system to “trick” investors into holding their ADA assets, therefore, Cardano’s sustained market cap.
Cardano’s founder did not hold back; he went to the X platform to address the issue point-blank. Outraged by the false assertions, Hoskinson clarified that ADA staking is not and has never been locked. He further criticized the podcast commentators questioning the crypto community: “Why does anyone trust these people anymore?”
The crypto community response was swift and severe; Cardano’s SPO PRIDE jumped in for the save, pointing out that these claims did not align with Cardano’s transparent and flexible staking system. Dismissing the claims PRIDE pointed out that those claims were ironical in a way that Cardano is one of the only top-tier crypto projects to offer native liquid staking. Unlike many other blockchain projects, Cardano does not rely on liquid staking derivatives (LSDs) or tokens (LSTs) to provide liquidity to staked assets. This means ADA holders can withdraw their tokens anytime, with no restrictions.
Additionally, the Cardano community went ahead highly refuting the idea that ADA holders are “tricked” into a locked staking system. The Cardano community also lashed out at the podcast commentators for claiming that the project lacked adoption labeling it as another misinformed narrative.
In response to the controversy, the crypto community took several steps to correct the false narrative. A Community Note posted on X stated that Cardano’s staking mechanism has always been liquid and non-custodial.
Cardano’s staking system has garnered a lot of attention recently. As we earlier reported, Cardano ushered in the Volaitre era with the successful activation of the Chang hard fork. With the community gradually taking over governance, ADA holders raised an issue about staking rewards which Charles Hoskinson made perfectly clear.
