Cardano creator is striking back at what he calls a “massive FUD storm” that is ongoing ahead of the full rollout of the Alonzo upgrade.
Writing on Twitter, Hoskinson — who co-founded Ethereum before later launching ADA in 2017 and now develops it full-time — explained why the Cardano fear, uncertainty, and doubt (FUD) is expected.
“It’s Nothing New”
Charles Hoskinson was apparently responding to explosive reports on Twitter from Ethhub.io co-founder Anthony Sassano who, among other things, said that Cardano was broken and that the crypto’s fans were realizing that “you can’t peer-review your way out of fundamental issues”.
In the Twitter thread, Sassano laid out his justification for being bearish on ADA, alleging that the first dApp launched on the coin couldn’t do concurrent transaction processing — the basic feature necessary to support DeFi— despite six years of peer-reviewed research and a market capitalization of over $90 billion.
He further argued that Cardano is the “biggest joke” in the cryptocurrency industry while mocking the fact that the network’s scientists are working hard to deal with the current issues plaguing it.
Other critics also claimed that Cardano’s dApp could only handle one transaction per block, comically labeling it a “unoswap”. Another user posited on Reddit: “Looks good. But when I try to swap things, all I’m getting is ‘Transaction fail: UTxOs are being used in this block. Please wait 20-40 seconds and try again.’”
Responding to these criticisms and others, Hoskinson argued that the team witnessed the same FUD storm with the Shelley update last year and is thus nothing new. He further stated that the backlash is coming from people who are looking to “burn down” developments that they “don’t understand or feel threatened by”.
The Alonzo launch is slated for September 12. Hoskinson expects this to be a big day for Cardano, but it is just one day on a long journey ahead.
“As expected, there is a massive FUD storm underway. We saw the same with Shelley last year. It’s nothing new. Just people wanting to burn down what they don’t understand or feel threatened by. September 12th is a big day, but just a day on a long journey we are all on together.”
Input Output, the lead research, and development company behind Cardano, also came out to clear the FUD regarding the UTxO transactions. In a blog post, IOHK said Cardano will be able to process multiple transactions simultaneously, not just a single transaction per block.
The team also indicated that Cardano’s EUTXO-based design choice offers better security against bad actors and eliminates the risk of high transaction fees.
Cardano Rally Fizzles
After registering a supernormal upsurge in recent months, ADA is now doing a reversal.
At present, Cardano is the third-largest cryptocurrency with a circulating market cap of $84.88B. ADA is trading at $2.65, which represents a significant decline from the coin’s recent peak above $3 that was posted shortly after the announcement on September 1 that the network’s public testnet supports smart contracts. The cryptocurrency has wiped out 8.73 percent of its value over the past 24 hours.