Cardano (ADA) founder says Legacy is eating Crypto’s principles

Charles Hoskinson explained how traditional financial players are entering the crypto sector & eating Crypto’s basic principle of decentralisation.

Charles Hoskinson is the founder of Cardano & Co-founder of Ethereum. In 2014, Hoskinson left the Ethereum project & started working on Ethereum’s rival blockchain Cardano. Hoskinson always tries to remain on his basic principle to push the adoption of the Cardano blockchain, instead of using any kind of hype & trending concept. 

Recently Cardano founder appeared in a new live video session via his personal YouTube channel. He talked about the increasing centralization across the Defi crypto platforms & crypto assets, particularly stablecoins.

Hoskinson said that stablecoins like USDC & USDT currently contribute to 70% of on-chain transaction volume and this is a big problem because these types of stablecoins are backed by centralised assets & centralised financial systems. 

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According to Hoskinson, these stablecoins are helpful for crypto traders but in reality, these stablecoins may impact the Defi sector badly, where we think that everything is decentralised. 

Furthermore, he noted how such stablecoins can be held on two chains simultaneously, without devaluation of their values on one chain. 

1/2) they’re only backed by $0.5. They have to pick a winner. They either pick A or they pick B. A or B but not both. They can’t pick both by design.”

– Charles Hoskinson, Cardano founder

— Bitcoinik (@Bitcoinikdotcom) February 15, 2024

Hoskinson suggested crypto companies adopt algorithm stablecoins. Many people supported the Cardano founder’s opinion but some people opposed the idea of algorithmic stablecoins adoption.

Colin LeMahieu, the creator of Nano (XNO), said that it is almost impossible to create the best algorithm for stablecoins while simultaneously following the fundamentals of crypto.

“Algorithmic stable coin” is the perpetual motion machine of economics. Yes, it would be desirable though it’s demonstrably impossible.

Their viability can be disproven starting in absolute terms and then weakening requirements (shifting the goal post) as advocates usually do.… https://t.co/ZQVBqNS5Pd

— Colin LeMahieu (@ColinLeMahieu) February 14, 2024

Colin took the example of TerraUSD (UST) stablecoin, which was based on an algorithm but collapsed badly in May 2022. 

Despite the failure of top algorithmic stablecoin TerraUSD, Cardano devs launched Djed stablecoin went on the Cardano mainnet on January 31, 2023 but rarely people talk about this stablecoin. It is because Djed is now available on multiple crypto networks, like USDC & USDT. In short, Djed stablecoin is highly isolated from other crypto networks, so only Cardano powered Defi platform users know & use it.

Read also: Coinbase (COIN) stock surges 26% in 5 days, as BTC price pumps &…

Cardano (ADA) founder says Legacy is eating Crypto’s principles

 

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