Hoskinson Calls No-Confidence Vote Over $600M ADA Scandal
Cardano founder Charles Hoskinson has demanded a vote of no confidence in the Cardano Foundation over the $600M ADA scandal. During a Twitter Space, Hoskinson blamed the foundation for spreading unfounded theft rumors and harming the ecosystem’s integrity. He proposed legal action with Swiss authorities and reallocating CF funds to the Cardano treasury. An independent audit cleared Hoskinson and insiders, confirming no basis for the theft claims and revealing unredeemed ADA was held in the Intersect trust. This ADA scandal and Hoskinson’s call for accountability risk dividing the community further. Santiment data shows ADA market sentiment in the fear zone. On-chain analysis identifies support at $0.76–$0.80 and resistance at $0.85–$0.90, suggesting traders watch these levels amid the volatility created by the ADA scandal.
Bearish
Hoskinson’s direct challenge to the Cardano Foundation amid the $600M ADA scandal heightens governance uncertainty. The allegations and call for legal action have eroded community trust and pushed ADA sentiment into fear territory, as shown by Santiment. Historically, disputes over project governance—such as Tezos’s delayed launch and EOS’s arbitration issues—led to short-term price declines. In the immediate term, ADA is likely to face increased volatility and potential sell pressure as traders react to the governance risk. Over the medium to long term, if the independent audit’s findings lead to clearer governance structures and fund reallocation, confidence could gradually return, stabilizing ADA’s outlook.