TL;DR
- Charles Hoskinson has refuted claims that Cardano’s staking system locks ADA tokens, clarifying that it is a liquid, non-custodial staking system.
- Hoskinson and the community have rejected accusations that investors are being deceived. Users retain full control of their assets while they are staked.
- ADA has experienced a modest 0.8% increase in the last 24 hours, trading at $0.3453, with a generally disappointing performance throughout the year.
In response to recent incorrect claims about Cardano’s staking system, Charles Hoskinson, co-founder of the project, has come forward to refute the accusations. The entrepreneur addressed statements made by various crypto influencers who argued in a podcast that Cardano was blocking ADA tokens, preventing users from selling them.
Hoskinson labeled these claims as misinformation, clarifying that Cardano uses a liquid, non-custodial staking system. This means that users can retain full control over their assets while they are staked.
The lies and misinformation about Cardano have reached epic levels. Stake isn't locked, but they still lie.
Why does anyone trust these people anymore? https://t.co/8eh3LdoSw1
— Charles Hoskinson (@IOHK_Charles) September 11, 2024
The controversy arose when influencers such as CTO Larsson, InvestAnswers, Mando, and MartyParty discussed various cryptocurrencies. MartyParty claimed that Cardano was deceiving investors by causing them to lock their tokens through its staking system, which he argued prevented them from selling. Hoskinson vehemently rejected these accusations, emphasizing that misinformation about ADA’s functionality has reached extreme levels.
Cardano (ADA) Has Had a Very Poor Performance This Year
The community has responded to such claims. On social media, clarifications have been made about Cardano’s staking system, highlighting that it is the only project among the top 20 cryptocurrencies offering direct liquid staking, unlike other popular networks like Ethereum and Solana, which rely on liquid staking derivatives through other blockchains.
Additionally, a community note has been added on X to debunk claims about locked staking, clarifying that Cardano does not have a locking period or a minimum amount of ADA required. Users retain custody of their delegated tokens, and rewards are distributed by the protocol itself.
Regarding ADA’s performance, it has risen only 0.8% in the last 24 hours, trading at $0.3453. Despite recent increases in transaction volume due to the launch of the memecoin deployer Snekfun, ADA’s overall performance has been disappointing this year.
On the other hand, the proposal to burn 1.5 billion ADA tokens from the treasury, related to the new decentralized governance system, has faced opposition, including from Hoskinson. While the burning of tokens could temporarily boost ADA prices if approved, it remains a debated topic within the community.
