Cardano founder Charles Hoskinson has responded to criticism regarding his perceived reluctance to attract a top-tier stablecoin to the blockchain. Tempers have flared within the Cardano community after an unidentified whale lost more than $6 million while swapping ADA for the USDA stablecoin.
User Loses $6 Million Swapping ADA for USDA
As reported by The Crypto Basic, a wallet that had been dormant for five years suddenly became active and exchanged 14.4 million ADA for US Dollar Anzens (USDA), a Cardano-based stablecoin. However, instead of receiving the expected $6.9 million worth of USDA, the trader ended up with just 847,696 USDA, resulting in a staggering loss of approximately $6.05 million. Multiple sources have attributed the incident to the user interacting with an illiquid liquidity pool and opting for a lesser-known stablecoin, which caused severe slippage during the swap.
Cardano Fan Calls Out Hoskinson
Notably, Cardano community members have expressed mixed reactions to the development. Some users blamed the trader for overlooking clear indicators that the swap would return far less value, while others directed their frustration at Hoskinson. In particular, an X user accused him of only reacting after problems occur and demanding to know why he has yet to launch the stablecoin that the community has been requesting.
Hoskinson Reacts
Reacting, Hoskinson responded emphatically that he is not responsible for bringing a stablecoin to Cardano. He posted the statement dozens of times consecutively, making it clear that launching a stablecoin on Cardano is not his responsibility. While Hoskinson and his company, IOG, originally designed and built the network, Cardano has since evolved into an ecosystem where independent teams can develop products such as stablecoins. Currently, Cardano’s stablecoin market remains relatively small, with a total market value of about $37.8 million. This represents only a fraction when compared to industry giants like Tether’s USDT.
Who Is Responsible for Bringing Stablecoins to Cardano?
Responding to users questioning who is responsible, Hoskinson clarified that the task falls to the Cardano Foundation. He noted that the Swiss-based nonprofit was allocated 600 million ADA, worth roughly $280.98 million, to bring stablecoins to the network. Despite stressing that it is not his obligation, Hoskinson’s IOG previously partnered with COTI to launch the Djed stablecoin. However, adoption fell short of expectations, and the token currently has a market cap of just $3.82 million. Hoskinson has also attempted to attract a major stablecoin issuer to Cardano. He has been in discussions with Ripple executives about bringing RLUSD, which recently surpassed a $1 billion valuation, to the Cardano ecosystem. While discussions are ongoing, no official launch date has been announced.
Urgent Need for Cardano to Improve Its DeFi
Meanwhile, Hoskinson stated that the trader’s recent loss highlights the urgent need for Cardano to strengthen its DeFi ecosystem by next year. He emphasized that while the network has the necessary technology, it is up to the community to collectively determine how to mobilize capital and integrations to support growth.