Cardano Foundation regains social media control amid governance turmoil News ▸ Cardano ▸ Governance
Cardano Foundation regains social media control amid governance turmoil
Assurances of community integrity come amidst internal power struggles and governance conflicts within Cardano.
2 min read
Updated: Dec. 13, 2024 at 2:59 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Cardano Foundation (CF) has regained control of its official X account after it was compromised in a hacking incident.
The breach, which occurred on Dec. 8, saw the account misused to promote a fraudulent ADASOL token. The attackers also spread fabricated claims about the Foundation, claiming the organization faced legal action from the US Securities and Exchange Commission (SEC).
In a Dec. 13 statement, the Foundation assured the community that those social media posts were entirely baseless and did not represent its position. It also confirmed that the organization’s internal systems were unaffected and that an investigation was underway to uncover how the breach occurred.
The incident comes amid rising tensions and governance disputes within the Cardano ecosystem.
Whistleblower allegations
On Dec. 11, a prominent Cardano community member BigPey shared an anonymous whistleblower email outlining internal challenges within the Foundation.
The mail accused the Foundation of power struggles, attempts to marginalize key ecosystem contributors like Cardano’s founder Charles Hoskinson, and a lack of meaningful involvement in decentralized governance initiatives.
One key accusation involved Catalyst Fund13, a program used to set ecosystem priorities. The Foundation reportedly registered as a Delegated Representative (DRep), wielding 180 million ADA in voting power. Critics expressed concern over the potential misuse of this influence to override community interests.
Another point of contention was the Foundation’s engagement with CIP-1694, a critical proposal for on-chain governance, and its minimal contribution to drafting the Cardano Constitution. The Foundation’s participation in these initiatives increased only after others had made substantial progress.
The email also highlighted disputes over the Cardano Summit, accusing the Foundation of prioritizing its preferred location in Dubai while sidelining other options like Argentina. This, coupled with demands for significant funding despite holding large ADA reserves, has fueled concerns about transparency and inclusivity in decision-making.
Hoskinson’s reaction
Hoskinson addressed these concerns in a social media post, acknowledging the ecosystem’s challenges. While noting progress in some areas, he criticized the Foundation’s opaque decision-making processes.
He stated:
“The board members are not community elected or appointed. No one can influence or veto their decisions and policies. And there does seem to be a strong dislike of me personally in the organization. You can not hide things forever in a decentralized ecosystem. Everything comes out.”
Hoskinson pointed out that the Foundation’s board operates independently, with no accountability to the broader community, and expressed frustration over its resistance to collaborative efforts like the Intersect initiative for governance.
Cardano Market Data
At the time of press 2:59 pm UTC on Dec. 13, 2024, Cardano is ranked #9 by market cap and the price is down 2.06% over the past 24 hours. Cardano has a market capitalization of $39.13 billion with a 24-hour trading volume of $1.51 billion. Learn more about Cardano ›
Crypto Market Summary
At the time of press 2:59 pm UTC on Dec. 13, 2024, the total crypto market is valued at at $3.63 trillion with a 24-hour volume of $184.94 billion. Bitcoin dominance is currently at 55.02%. Learn more about the crypto market ›
Mentioned in this article
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Latest Cardano Stories
Featured Story
Advertise Here
In this article
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Cardano Foundation
There are three organizations that are contributing to the development of Cardano.
Input Output
Input Output Hong Kong (IOHK) is a research and development company committed to using the peer-to-peer innovations of blockchain to build accessible financial services for all.
Charles Hoskinson, based in Colorado, stands out as a prominent figure in the blockchain and cryptocurrency sphere.
