Charles Hoskinson, founder of the cryptocurrency Cardano (ADA), again criticized Bitcoin last Sunday (26). In live on Twitterthe developer was upset with the SEC’s decision to classify his project as a security.
The SEC’s first listing of Cardano occurred in June this year, after the Commission sued broker Binance. A day later, Cardano again appeared as collateral in the SEC’s lawsuit against Coinbase. Last week, Cardano was cited again, this time in an SEC lawsuit against Kraken.
“So they say [a Cardano] is a security. Okay, but what the heck does that mean if it’s decentralized?Hoskinson asked about his life.
says the creator of Cardano #Bitcoin It is not decentralized.
“Explain to me the difference between Bitcoin and other cryptocurrencies as if I were five years old.” he said.
As a reminder, Cardano and Hoskinson are in the crosshairs of the SEC. pic.twitter.com/o8QH2LkY8V
— Livecoins (@livecoinsBR) November 28, 2023
Bitcoin pioneer competes with Cardano founder
Following his comments, Charles Hoskinson asks his followers what the difference is between Bitcoin and Cardano. After all, the former was classified by the SEC as a commodity, unlike so many other cryptocurrencies.
“Explain to me the difference between Ethereum, Bitcoin and Cardano, and the rest of the projects. Explain it to me as if I were 5 years old. Run the damn Howey test on them. Show me the difference between the two.”
Adam Back, creator of Hashcash and seen by some as Satoshi Nakamoto, answered Hoskinson’s question. In short, the developer pointed out all the points already mentioned by the SEC during these classifications.
“It’s very simple: Bitcoin had no ICO, most people thought it had no value, it was mined from scratch, it is decentralized, there is no CEO, no “foundation” funded by an ICO chest, incorporation, etc So Cardano, Ethereum and others clearly meet the Howey test, while Bitcoin is a commodity.”responded Back.
@IOHK_Charles it’s very simple: Bitcoin didn’t do an ICO, most people thought it had no value, it was mined from scratch, it’s decentralized, there’s no CEO, an ICO-targeted “foundation”, incorporation etc. so cardano , eth etc. clearly pas howey, Bitcoin is a commodity and not
— Adam Back (@adam3us) November 27, 2023
The discussion continued through several tweets, with Hoskinson claiming that Cardano was conducting an airdrop and not an ICO (initial coin offering). Back continued his attack, mentioning points such as pre-mining and the expectations of a return of the Cardano team.
Charles Hoskinson Says Bitcoin Mining Is Centralized
Still in the same video, Charles Hoskinson says that there are different points of view when analyzing cryptocurrencies. In his comments, the Cardano founder compares the SEC’s push against some cryptocurrencies to the wars in Vietnam, Afghanistan, Iraq, the assassination of John F. Kennedy and other sensitive issues in American history.
“With about three entities you can do a 51% attack on Bitcoin, because that’s how hashing power works, but apparently it’s decentralized and the ‘orange team’ gets free rein.”said Hoskinson. “It’s an absolutely pathetic joke. It would be funny if hundreds of millions of dollars weren’t spent on legal fees.”
At the time of writing this article, Cardano (ADA) has a market cap of $13.5 billion and is the 8th largest cryptocurrency on the market. Although Ripple (XRP) defeated the SEC in US courts, giving Cardano hope, it is possible that its price could be negatively affected by a lawsuit.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
