No good news for the cryptocurrency and foundation Cardano, given the recent problems encountered within was born from an open letter published on October 12, Charles Hoskinson, founder of Input Output Hong Kong (IOHK), and Ken Kodama, CEO of Emurgo, asked the Foundation to “voluntarily submit to the Swiss authorities” and asked its president, Michael Parsons, to resign.

The Cardano noprofit Foundation is one of the three independent bodies responsible for the development and management of Cardano Ecosystem. The other two bodies are precisely IOHK and Emurgo.

In the same letter, Hoskinson and Kodama outlined plans to expand the reach of their organizations in order to fill the gaps left by the Foundation itself.

Shortage of benefits “of the Cardano Foundation

In a long list, Hoskinson and Kodama make explicit their “great frustration” about the inactivity and shortcomings attributed to the Cardano Foundation and its employees, as well as their “attempts to persuade them” from asking for the change of the board of directors and the its president.

Many of these complaints seem to stem from the fact that the Foundation is finding results that are lower than expected compared to what was expected. “There are no KPIs or public strategy documents”, reports the open letter, also arguing that there is no “clear roadmap” in the Foundation’s plans, nor transparency in fund management.

Other more serious accusations suggest a power struggle between the Cardano Foundation and the other main organisms of the ecosystem. In a long section of the letter, the authors accuse the body of: “Material misrepresentations and illicit affirmations … including confirmation of ownership of the Cardano brand”.

In addition to demanding the dismissal of the president and that the foundation complies with Swiss law, the authors of the letter included an even more radical proposal: “to intervene”.

Due to the alleged bankruptcies of the Cardano Foundation, Hoskinson and Kodama have said that their companies will commit themselves to taking their place.

It is believed that up until 2020, the two companies have decided to assume the functions previously reserved to the Cardano Foundation, including the recruitment of new staff and the expansion of marketing efforts on behalf of the community. IOHK has also undertaken to replace it with a “decentralized foundation based on the DAO”, whose governance will be conducted directly on the Cardano layer.

The Foundation has not yet responded to the letter, but it is difficult to imagine total silence after such a strong warning.

I read that with an accusation of this magnitude, by a cryptocurrency spokesman like Charles Hoskinson, the foundation is likely to be immediately on the defensive. I just hope that this does not lead to a real war between the two set off.

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Responses

  1. Zeus69

    Great article @Warface, okay, okay, calm down, i am an ADA HODLR, I can handle the pain for a while, I will keep my smile, proper investment is not a race, but patience to handle the pace, with a while to wait it will come back from fate. LOL
    Sorry cant help it, poetry is a habit.
    Great write buddy!
    Regards,
    Mark (Zeus69)

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  2. Workin2005

    Nice overview of the situation. Personally, I think Charles has handled this situation as well as he could. While things may get painful for ADA holders in the short term, it may give investors a real opportunity to scoop up Cardano at next to nothing. This would be a risking play of course…but the pay off may be worth it.

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