Exclusive: 5 Shocking Facts About Cardano’s $619 Million Scandal and Its Impact on ADA
Cardano’s Founder Faces Explosive Allegations – What Does It Mean for ADA’s Future?
Despite recent controversies, Cardano (ADA) continues to hold support at $0.74. Over the past 24 hours, the token has seen a modest 1.4% increase, though it’s down 5.6% for the week. With a 24-hour trading volume of $856 million, market activity has slowed but remains stable. However, ADA is still a far cry from its all-time high of $3.09, set in September 2021, now trading 75% lower.
The spotlight has shifted to Charles Hoskinson, Cardano’s founder, who faces serious allegations of misusing his access to the network. NFT artist Masato Alexander claims Hoskinson moved 318 million ADA (worth $619 million at the time) during the 2021 Allegra Hard Fork. Alexander’s accusations point to a two-step process involving the destruction of unclaimed ADA and the use of a special transaction to redirect funds.
“In 2021, Charles Hoskinson unilaterally used his Genesis keys to rewrite the accounting book and take control of $318 million.”
– Masato Alexander (@masatoalexander) May 7, 2025
Hoskinson has vehemently denied these claims, calling them “false and destructive.” He argues that over 99.8% of ADA from the 2017 token sale was purchased, with the remaining unclaimed funds donated to the Cardano treasury. He also promised a full audit to address the allegations.
Despite the drama, technical indicators suggest ADA is in a consolidation phase. The Relative Strength Index (RSI) at 51.7 indicates neutral momentum, while the MACD shows a slight bearish crossover. Key support levels are holding, but the market awaits a catalyst for a decisive move.
What’s next for ADA? If bulls can reclaim the 10-day EMA at $0.76, we could see a push toward $0.78. However, failure to hold current support could lead to a drop below $0.70. The stakes are high, and the crypto community is watching closely.
Stay updated on the latest developments in the crypto world by joining our Telegram channel and engaging in the discussion on our Telegram chat.
FAQ
1. What are the allegations against Charles Hoskinson?
Masato Alexander claims Hoskinson misused his access to move 318 million ADA during the 2021 Allegra Hard Fork.
2. How has Cardano’s price reacted to the scandal?
ADA has seen mixed performance, with a 1.4% increase in the last 24 hours but a 5.6% drop over the week.
3. What is Cardano’s current support level?
ADA is holding support at $0.74, with key levels at $0.73 and $0.76.
4. Has Hoskinson responded to the allegations?
Yes, he has denied the claims and promised a full audit of the treasury transactions.
5. What’s the outlook for ADA?
The market is neutral, with potential for a move to $0.78 if bulls regain control or a drop below $0.70 if support fails.
Share this article to keep the conversation going and stay informed about the latest in crypto!
