Cardano Founder Declares Crypto Under Attack: ‘Legacy Is Eating Crypto’

In a recent video titled “Legacy is Eating Crypto,” Cardano founder Charles Hoskinson has expressed concerns about the increasing centralization of power in the cryptocurrency industry. Hoskinson specifically highlighted the dominance of a few top companies in the Bitcoin and stablecoin sectors, arguing that this poses risks to users and undermines the decentralized nature of crypto.

Centralization Of Stablecoins

Hoskinson pointed out that asset-backed stablecoins, such as Tether (USDT) and USD Coin (USDC), control a significant portion of the stablecoin market. He noted that USDT and USDC alone account for 70% of on-chain volume while representing only 10% of the entire crypto industry.

Hoskinson expressed concerns about the regulatory risks associated with these centralized stablecoins. Since the issuers of these stablecoins are regulated entities, they are subject to the laws and regulations of the jurisdictions in which they operate. This means that the holders of these stablecoins could be affected if the issuers are required to comply with certain local policies.

On Spot Bitcoin ETFs And Institutional Involvement

Hoskinson also criticized the recent surge in popularity of spot Bitcoin exchange-traded funds (ETFs). He noted that large institutional players, such as BlackRock and Fidelity, have amassed significant amounts of Bitcoin, which has contributed to the recent price rally. However, Hoskinson warned that this trend is leading to the centralization of power in the Bitcoin sector, with a small number of institutions controlling a large portion of the market.

Hoskinson argued that the increasing centralization of the crypto industry poses a threat to its decentralized nature. He believes that the dominance of a few large players could stifle innovation and limit the potential of crypto to revolutionize finance. Hoskinson emphasized the need for the crypto community to remain vigilant and to work towards preserving the decentralized ethos of the industry.

Legacy is Eating Crypto https://t.co/36mn4sltef

— Charles Hoskinson (@IOHK_Charles) February 12, 2024

In contrast to the centralized approach of many other crypto projects, Hoskinson highlighted Cardano’s commitment to decentralization. He explained that Cardano is designed to be a decentralized platform that empowers individuals and communities to participate in the development and governance of the network. Hoskinson expressed confidence that its decentralized approach will enable it to thrive in the face of the challenges posed by centralization.

Hoskinson’s analysis of the crypto industry raises important questions about the risks of centralization and the need to preserve the decentralized nature of crypto. As the industry continues to evolve, it remains to be seen how these concerns will be addressed and whether Cardano’s decentralized approach will prove to be successful.

Meanwhile, Cardano (ADA) finds itself in a technical tussle, trapped between a descending channel and key support levels. A recent attempt to break free above the channel fizzled, leaving the near-term outlook clouded.

Cardano price analysis Cardano ADA$0.560

is witnessing a tough battle between the bulls and the bears near the downtrend line of the descending channel pattern.

The bulls pushed the price above the channel on Feb. 10, but they could not build upon the breakout on Feb. 11. The…

— Ashleigh Ryan (@AshleighRyan2) February 12, 2024

Currently, ADA hovers around $0.56, facing immediate resistance at $0.62. Overcoming this hurdle is crucial for a potential climb towards $0.68. However, the 50-day SMA ($0.53) acts as a strong support, with recent buying interest suggesting potential for a bounce.

Ultimately, sustained momentum above $0.62 will determine if bulls can regain control or if bears pull ADA back into the descending channel. Remember, these are short-term technical indicators, and broader market forces and fundamental developments can significantly alter the price trajectory. Always conduct your own research before making any investment decisions.

Featured image from Adobe Stock, chart from TradingView