Hoskinson blasts VCs, ‘Wall Street types’ for downturn in crypto markets
Charles Hoskinson drops some truth bombs regarding the market downturn and how VCs and 'Wall Street types' are responsible.
Cardano founder Charles Hoskinson posted a video on Wednesday sharing his views on the crypto market downturn.
He said, being in crypto for over ten years, he’s seen it all twice. Nothing fazes him or any of the ‘old guard’ anymore. Adding that, adverse events, be they the collapse of a stablecoin or a project exit scam, do not mean it’s the end of crypto.
“The new people, the minute that something occurs, like for example, the collapse of a stablecoin or the collapse of Bitconnect or these types of things, then they say, this is the end of crypto…”
Total crypto market cap sinks
Although institutional money in crypto is often celebrated, Hoskinson clarified that having the ‘Wall Street types’ in digital assets comes at a price. Namely, it’s just another asset to dump when times get bad for them.
“Most [institutions] are looking at it [crypto] as a high risk, high return asset, and in times of recession, reallocate your portfolio. This was always the danger of inviting the Wall Street types in… And when the markets go not in the direction they want, they dump it.”
This situation has created a disparity between institutions and retail. Retail investors choose to hold on because they wish to opt-out of a broken system. But, at the same time, they are suffering due to their conviction on the matter.
The total crypto market cap is down $1.487 trillion, or 51%, from early November 2021 highs.
Slow and steady wins the race
Hoskinson took the opportunity to reiterate Cardano’s scientific approach to research and development, which he admits isn’t ‘sexy’ and ‘doesn’t get love from the media.’ However, he believes it is the only way to approach blockchain building.
The result is robust protocols that work, and most of all, true decentralization at scale, which is the anthesis of the current situation we’re in regarding institutions.
“Which is why we invested the time to write the papers we wrote, it’s why we invested the time to apply formal methods to those papers, it’s why we invested the time to measure twice cut once. Whereas others did not, chasing gains for their VC masters.”
Hoskinson reminded us that the point of cryptocurrencies is to give people a different option to the ‘dystopian future that’s being offered to us, where we own nothing and will be happy.’
Despite blood in the streets, the Cardano founder said he will continue doing what he has been doing.