In a recent interview, Charles Hoskinson countered users criticizing ADA for hovering around $0.40. Their doubts about Cardano are compounded by the emergence of competing tier-one platforms, including Solana and TON. However, Hoskinson is not deterred by short-term market fluctuations. In his opinion, the path to long-term success is the right foundation for the project and competent management.
Hoskinson recalled his work as CEO of Ethereum in 2014. At that time, he was afraid of the growth of the NXT crypto project. According to Hoskinson, it came “out of nowhere”, quickly introducing decentralized exchange functions and smart contracts – technologically the project was many years ahead of Ethereum. But despite the innovation, NXT has fallen into obscurity, Hoskinson said. And he clarified: now its “blurred” market capitalization is less than $900,000, and the cryptocurrency itself ranks 8645th in the CoinMarketCap ranking and has zero trading volume.
According to Hoskinson, the collapse of NXT can be attributed to two factors: poor token distribution and an inadequate governance system. This led to the project splitting into different branches, including Lisk and Waves. The Cardano executive claims that if NXT had implemented the correct governance system, Ethereum would not exist today.
“Management is of utmost importance. This is the key factor that determines whether a project will succeed or fail. In the long run, bad management will kill any project,” Hoskinson said.
As for Cardano, Hoskinson has high hopes for the upcoming Chang hard fork (Cardano Improvement Proposal (CIP) 1694), which is scheduled for the second quarter of 2024. This hard fork should implement a new proof-of-stake model called Ouroboros Leios and make major changes to the network governance structure, the developers say.
According to Cardano Blockchain Insights, in March the number of addresses in the Cardano network exceeded 4.6 million. Since the beginning of the year, this figure has grown by 3.75%.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
