A major rift has emerged within the Cardano ecosystem, with founder Charles Hoskinson publicly calling for the dissolution of the Cardano Foundation (CF). This dramatic plea stems from deep-seated frustrations regarding allegations of fund misappropriation and the Foundation's perceived role in "ruining the integrity" of the blockchain. The unfolding dispute has sparked concerns about potential community division and its impact on the ADA token's market sentiment.
Allegations, Audit, and Exoneration
The core of the conflict revolves around accusations that Hoskinson and early insiders allegedly misappropriated over 300 million ADA tokens, valued at more than $600 million at the time. Hoskinson vehemently denied these claims, asserting they were propagated by Cardano Foundation employees. In response, he commissioned an independent audit to investigate the allegations. The recently released report unequivocally exonerated Hoskinson and other insiders, stating that the accusations lacked any factual basis. It further clarified that some unredeemed ADA from early investors was directed to Intersect, a trust fund established to oversee Cardano's roadmap, with contributions from founding members Input Output and EMURGO.
Hoskinson's Ultimatum and Community Impact
Despite his exoneration, Hoskinson's frustration with the Cardano Foundation has intensified. He lambasted the CF for allegedly spreading the theft rumors and for failing to fund the independent audit that cleared his name. Hoskinson proposed a "vote of no confidence" and even suggested a class-action suit with the Swiss government to remove the board, advocating for the Foundation's funds to be redirected to the Cardano treasury or another ecosystem-supporting organization. This hard stance could significantly divide the Cardano community. Already, this internal strife has adversely affected ADA's market sentiment, which has reportedly plummeted to "fear levels" according to Santiment data, indicating a shift from an optimistic to a bearish crowd outlook. However, on-chain analytics often suggest that prices can move contrary to general crowd expectations, hinting at a potential recovery for ADA despite the ongoing internal turmoil.
