Cardano founder Charles Hoskinson has recently expressed frustration over the sheer volume of misinformation about ADA, noting that it has now reached “epic” levels.
The latest rumor claims that Cardano’s large market cap is due to some investors supposedly being locked in and unable to sell their ADA holdings. This claim surfaced during a recent podcast featuring prominent crypto commentators InvestAnswers, CTO Larsson, MartyParty, and Mando.
InvestAnswers raised a question about why older crypto projects like Cardano are still highly ranked. He claimed that Cardano has a large market share of over $12 billion, “yet no adoption” in his view.
Renowned skeptic MartyParty responded by alleging that ADA holders are locked in staking pools and are unable to sell. He emphasized that the Cardano team supposedly used the staking system to “trick” many individuals into holding ADA tokens at a rate they could not exit.
In his view, this speculative guess explains why ADA continues to have a multibillion-dollar market cap.
Cardano Founder Reacts
This commentary triggered a reaction from Cardano founder Charles Hoskinson, who lamented the spread of misinformation about Cardano. He clarified that ADA staking is not locked and called out those spreading these lies.
He questioned why members of the crypto community continue to regard individuals like MartyParty as credible voices in the space.
The lies and misinformation about Cardano have reached epic levels. Stake isn't locked, but they still lie.
Why does anyone trust these people anymore? https://t.co/8eh3LdoSw1
— Charles Hoskinson (@IOHK_Charles) September 11, 2024
Clarification on ADA Staking
Also, the crypto community quickly moved to set the record straight and denounce the false claims.
Cardano SPO PRIDE pointed out the irony of the accusation. In a statement, PRIDE highlighted that Cardano is the only top 20 crypto project offering native liquid staking, meaning ADA tokens are never locked in staking.
Unlike other projects, Cardano does not require liquid staking derivatives (LSDs) or liquid staking tokens (LSTs).
PRIDE emphasized the contradiction in the claim, noting that despite Cardano’s flexible staking model, some individuals still believe that the project’s high market capitalization is due to stakers being “tricked” into locked staking positions.
Additionally, PRIDE pointed out that this claim is often paired with the assertion that Cardano lacks adoption, which is another misleading narrative.
The commentary also highlighted the benefits of Cardano’s native liquid staking, noting its alignment with Satoshi Nakamoto’s principles of self-custody.
Moreover, the community has taken steps to correct the misinformation about Cardano’s staking mechanism. A Community Note on X (formerly Twitter) clarified that Cardano has always offered liquid, non-custodial staking and has never had locked staking. This note directly refutes the false claim that Cardano’s staking model is responsible for its high market capitalization.
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