Cardano founder Charles Hoskinson has confronted the criticism from Bitcoin maximalists and the regulatory scrutiny faced by Cardano and other altcoins. In a Friday Ask Me Anything (AMA) session, Hoskinson delved into the state of the cryptocurrency industry, expressing concerns about the increasing maximalism within the Bitcoin community and the regulatory challenges faced by projects like Cardano.
Hoskinson reminisced about the early days of the cryptocurrency space when Bitcoin was small, and there was a sense of collegiality. However, he noted the shift towards maximalism, where some assert that only Bitcoin has value, labeling all other projects as scams or securities. Hoskinson argued against this narrative, criticizing the likes of self-professed Bitcoin maximalist like Max Keiser who have argued in the past that everything else is a security apart from Bitcoin.
“Bitcoin has changed a lot,” said Hoskinson, “it went from a collegial environment where people were having fun… to almost a cult where a group of people say…that everything but Bitcoin is a scam [and] anyone who works outside of Bitcoin in the cryptocurrency industry is a criminal or misguided.”
In the AMA, he also highlighted a concerning reality where certain companies and individuals within the Bitcoin space actively lobby Congress and the U.S. federal government to criminalize all non-Bitcoin cryptocurrencies. Hoskinson backed this assertion by citing direct conversations with lawmakers’ staff who disclosed that influential members of the Bitcoin community had advocated for the outright illegality of alternative coins.
Hoskinson further criticized regulatory inconsistencies by the U.S. Securities and Exchange Commission (SEC) in classifying cryptocurrencies.
“There is a glaring absence of objectivity, with no clear differentiation between the operational realities of Bitcoin, Ethereum, Cardano, and other tokens,” he added. “It’s a completely milky water and every single day we’re at a complete loss where things are simultaneously a currency, a commodity [or] a…it’s not even clear how these things would operate.”
Notably, earlier this week Hoskinson accused the SEC of giving Bitcoin preferential treatment while subjecting other cryptocurrencies, including Cardano’s ADA token, to more stringent scrutiny. Hoskinson called the SEC’s treatment of ADA a “pathetic joke” and demanded an explanation for the differential regulatory approach.
Responding to claims that Cardano had conducted an Initial Coin Offering (ICO), Hoskinson also clarified that ADA distribution occurred through an airdrop, involving thousands of participants globally. He argued that this method did not constitute an ICO and questioned the legitimacy of stricter regulatory oversight based on such claims. That said, he called for a more nuanced understanding of decentralization and innovation, challenging the maximalist rhetoric that dominates discussions within the cryptocurrency community.