Claims of Cardano Founder Charles Hoskinson Selling 1.5 Billion ADA Resurface Again Amid Price Crash

Key Insights:

• The controversy has also renewed attention on earlier Allegra hard fork allegations involving 318 million ADA moved to Cardano’s reserves.
• The claims are based on large ADA transfers linked to wallets associated with Cardano parent Input Output Global.
• Despite the ongoing debate, ADA price is showing signs of recovery after falling to a five-year low near $0.15.

Reports of Cardano founder Charles Hoskinson selling 1.5 billion ADA coins have resurfaced. As the ADA price hit a fresh low at $0.15 earlier this week, on-chain investigation suggests that Hoskinson may have sold off a massive quantity when ADA touched its all-time high of $3.09. Following the crash, Cardano is showing signs of recovery once again.

Cardano News: Did Charles Hoskinson Sell 1.5 Billion ADA?

The latest on-chain investigation has once again resurfaced allegations that Charles Hoskinson may have sold a substantial amount of Cardano during the 2021 bull market. NFT creator Masato Alexander published an analysis tracing large ADA transactions. He claims that these transactions could be linked to entities associated with Input Output Global.

The report highlights the transfer of 925 million ADA, along with several other transactions involving around 20 million ADA each. According to Alexander, the transactions originated from funding sources connected to IOG-affiliated staking pools. They happened during the period when the ADA price rallied to its all-time high of $3.09 in 2021.

However, note that the analysis doesn’t provide concrete proof that the tokens were sold on the open market. The claims of a sell-off are just based on the interpretations of on-chain activity.

In response, the Cardano Foundation stated that it has no visibility into the specific IOG transactions referenced in the analysis. These renewed allegations have sparked a debate in the crypto community regarding historical ADA movements.

Cardano Founder And Allegra Hardfork

The recent allegations against Charles Hoskinson are not the first time from NFT creator Masato Alexander. In an earlier analysis, Alexander alleged that Hoskinson used Cardano’s genesis keys during the Allegra upgrade to move ICO and voucher-related UTxOs. This led to ultimately redirecting 318 million ADA coins to Cardano reserves.

Hoskinson rejected the allegations at the time. He stated that Input Output Global had not appropriated hundreds of millions of ADA belonging to users.

A Cardano redemption transparency report later stated that 99.2% of all vouchers had been successfully redeemed by holders. The report also confirmed that 390 unredeemed vouchers, totaling approximately 318 million ADA, were transferred to Cardano’s reserves following the closure of the Byron-era redemption process.

However, it noted that a post-sweep redemption pathway remained available for eligible holders who had not yet claimed their ADA tokens. The issue has resurfaced amid renewed scrutiny of historical ADA transactions and governance decisions within the Cardano ecosystem.

ADA Price Shows Signs of Recovery

After hitting the lows of $0.15, ADA price is showing some signs of recovery amid the broader crypto market strength. The Cardano price surged 3% yesterday and is currently trading at $0.1661.

Popular crypto analyst Sssebi said that Crypto analyst Sssebi said that Cardano is currently trading at its most oversold level on the weekly chart in the asset’s history.

According to the analyst, ADA’s current technical setup suggests that the price won’t remain subdued for a long time. Sssebi stated that he expects ADA price to recover above the $0.20 level within the next month, assuming market conditions stabilize. It could potentially be the beginning of the next recovery phase for Cardano.

Another analyst, Vuori Trading, has shown that Cardano has broken below a key multi-year support level following its recent market selloff. According to the analyst, ADA’s decline has brought the token directly to the lower boundary of a long-term trend structure.

As per Vuori, this support is likely to hold and could serve as the basis for a near-term price rebound. The analyst added that the current technical outlook remains his primary market scenario despite the recent weakness.

The analyst also acknowledged that the ongoing bear market has progressed more slowly than the 2018 cycle. He said that the ADA bottoming process could take additional time to fully develop.

Despite the near-term uncertainty, Vuori Trading maintained a bullish long-term outlook for Cardano. The analyst set an upside target of $6 to $13 if the broader market recovery unfolds as expected.

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