Cardano founder Charles Hoskinson announced an audit to verify the holdings of ADA tokens in response to allegations of misappropriation.
Accusations and Audit Preparation
The controversy began in May when several individuals accused Hoskinson of misusing 350 million unclaimed ADA tokens. In response to the allegations, Hoskinson stated he would be consulting with a defamation law firm, claiming the accusations have caused ‘hundreds of millions’ in brand damage to Cardano. He also confirmed that the audit is nearly ready and plans to read it publicly.
Market and Community Response
Following the audit announcement, ADA saw a modest 4.2% price rise to $0.86. Meanwhile, Coinbase added wrapped ADA to its Base network, boosting Cardano's DeFi exposure post-Leios upgrade. The community is divided: some support Hoskinson's push for transparency, while others remain skeptical of any internal audit.
Future of Cardano and Expectations
All eyes are now on the mid-August audit release. If Hoskinson delivers on his transparency promise and the audit clears IOG, Cardano could regain trust and momentum heading into Q4. However, if doubts persist, ADA may face increased pressure despite its technical upgrades and exchange adoption.
The audit and its outcomes will be pivotal for Cardano in the coming weeks. Hoskinson must navigate the situation effectively to restore confidence in the project and its technology.