Cardano’s founder once hit back at critics undermining his project.
Charles Hoskinson, the founder of Cardano, is in no mood to allow critics to look down on his project, as he has seized every opportunity to hit back at disrespectful comments aimed at the community.
The Cardano boss has taken a swipe at Do Kwon, the CEO of Terra Labs and the Terra ecosystem, following a comment the latter made on microblogging platform Twitter a few days ago.
What Happened
Trouble first started on April 8, 2022, after Kwon shared a post about the Luna Foundation Guard (LFG) purchasing $100 million worth of AVAX tokens from the Avalanche Foundation, as part of efforts to augment the TerraUSD (UST) stablecoin reserve.
“Welcoming $AVAX as the second major layer, one crypto asset next to $BTC as part of the $UST Reserve. The inclusion of @avalancheavax’s native token marks the start of a diverse pool of layer one crypto assets helping support the $UST peg,” LFG wrote on Twitter.
The cryptocurrency community was confused as to why LFG chose to purchase another cryptocurrency as opposed to its initial plan of buying Bitcoin.
Based on this lack of clarity, several questions were raised about the rationale behind the LFG’s recent AVAX purchase. Some users suggest that maybe the nonprofit building reserve for the UST is planning to burn other cryptos instead of LUNA, its native cryptocurrency.
Another Twitter user, with the username @jcoversmo asked whether all the cryptocurrencies purchased by LFG are correlated.
@jcoversmo added that if indeed the assets are correlated then it is possible that the Terra CEO did not hear about the Long-Term Capital Management (LTCM) story, which attracted billions of dollars from investors on the promise that it would take advantage of an arbitrage strategy to benefit from changes in market behavior.
However, things did not go as planned and investors suffered huge losses in the process.
Replying to @jcoversmo’s comment, Kwon noted that the LFG may need to buy ADA, Cardano’s native cryptocurrency, for negative correlation, an investment strategy involving a union between two variables where one increases as the other declines and vice versa.
We may buy $ADA for negative correlation
— Do Kwon ? (@stablekwon) April 8, 2022
Hoskinson Hits Back at Kwon
While this comment apparently angered the Cardano community and Hoskinson, the Cardano boss had to wait for the perfect time to respond and it happened to be when the price of LUNA was down over 43% in the last 24 hours following investors’ lack of trust in the Terra team.
Reacting to the comment today, Hoskinson quoted Kwon’s post saying:
“Should I buy some Luna for negative correlation?”
Should I buy some Luna for negative correlation? https://t.co/iFeHJTSudM
— Charles Hoskinson (@IOHK_Charles) May 10, 2022
This comes less than 12 hours after Hoskinson slammed Mike Novogratz, the CEO of Galaxy Digital Investments for hating on Cardano and supporting other cryptocurrency projects, especially LUNA.
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