Cardano Founder Hoskinson Warns of ‘Cargo Cult’ Projects In Crypto

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In his most recent live broadcast titled “Cargo Cults and the True Nature of Cryptocurrency,” Charles Hoskinson, the creator of Cardano, shared a detailed analysis of his views on the current digital asset landscape, user behaviors within communities, and ongoing legal struggles within the sector. The conversation touched upon the history of the industry, the eventual downfall of forgotten projects, and the occasionally concerning culture that can develop around specific tokens.

Cardano Founder Speaks Out On HEX

From Colorado, Hoskinson started off by detailing his return to his farm and expressing enthusiasm about the upcoming completion of construction. He then steered the conversation towards a comprehensive look at the crypto world, highlighting the vast number (tens of thousands) of cryptocurrency projects currently in existence, and pointing out that fresh projects are continuously being developed, while some older ones either dwindle or even resurface.

Hoskinson pointed out that among the multitude of cryptocurrency initiatives, we closely follow around 50 to 100 that seem intriguing and innovative. He grouped most projects into three main categories:

1. Projects that have failed or are on their way out, such as Peercoin, NXT, and Feathercoin.
2. Initiatives that turned out to be outright scams, like BitConnect, Celsius, and Luna.
3. Unusual projects, often referred to as curiosities, which have distinctive communities, unconventional tokenomics, marketing strategies, or cultures.

The founder of Cardano has consistently noticed a pattern in certain projects he referred to as the “third bucket”. He specifically mentioned Hex and PulseChain as examples, noting that during Ask Me Anything (AMA) sessions, members of these communities frequently seek his opinion. In fact, for the past five years or so, at least one person in every AMA has asked about Richard Heart, PulseChain, or Hex.

He made clear that he’s generally indifferent towards the topic, as he put it: ‘I don’t know much about him… except that Richard Hart is quite flamboyant and extravagant, with a penchant for high-end items, and he appears to run a well-liked YouTube channel.’

In my role as a researcher, I’d like to note that Charles Hoskinson pointed out an interesting contrast. The US Securities and Exchange Commission (SEC) has brought forward a personal case against Hart, alleging fraud and misappropriation of $12.1 million. On the other hand, the SEC has ongoing cases against businesses such as Coinbase, Binance, and Kraken, focusing on whether certain assets they handle fall under the category of securities. This distinction sheds light on the different approaches the SEC is taking in these instances.

He contended that cases similar to Richard’s are distinct and will continue to be so, explaining that the Securities and Exchange Commission (SEC) lawsuit encompasses allegations of personal misbehavior and improper use of funds, not just arguments about the categorization of tokens.

Additionally, Hoskinson brought up rumors about an Interpol Red Notice involving Hart, along with accusations concerning tax evasion in Finland and a violent offense case. He argued that these issues suggest the situation goes beyond simple disagreements and could potentially require collaboration between the IRS and the United States Department of Justice for criminal investigations.

As a diligent analyst, I can express it this way: “I affirmatively state that there exists a global alert issued by Interpol, which is indisputable and incontrovertible. However, it’s important to note that certain circles within the communities in question harbor doubts, suggesting that the allegations against me might be unfounded.

Following his mention of these particular points, Hoskinson admitted to receiving hostile comments and tweets from some PulseChain and Hex advocates. He stated that their abrasive tactics effectively rule out any chance of cooperation: “Further harassment will get you nowhere […] The only thing you’ve managed to do is extinguish whatever slight curiosity I might have had about exploring your environment, which is now completely vanished.

As a researcher, I find myself drawing comparisons to certain crypto pioneers who, in my observation, have fostered contentious communities. Specifically, the situation with Craig Wright and his Bitcoin SV (BSV) followers resonates strongly with me. Just as we all witnessed the tumultuous events within the BSV community, I can’t help but wonder: How many individuals are eagerly anticipating to build their next project on BSV today?

In his final remarks, Hoskinson offered some unsolicited guidance, suggesting these communities reflect on the kind of decentralized environments they aspire to create, independent of their founders. This self-evaluation should consider whether the current approach encourages collaboration or deters potential partners. As a genuine cryptocurrency and a truly decentralized entity, he emphasized, one should aim for self-governance and distinctiveness from its founder. In light of this, he posed the question: What type of ecosystem do you wish to cultivate?

Regardless of his stern demeanor, Hoskinson expressed goodwill towards the communities, underlining Cardano’s commitment to remain impartial and uninvolved: “I hold no grudges against the PulseChain community or the Hex community… I don’t have any interest in your ecosystem,” he declared, further noting that he will refrain from commenting on this matter any further.

At press time, Cardano traded at $0.95.

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2025-01-10 21:42