Charles Hoskinson Debunks MartyParty's Allegations, Reaffirms Cardano (ADA) Staking is Liquid and Unlocked

A podcast by the quartet of CTO Larsson, MartyParty, Mando, and InvestAnswers sparked the latest round of debates. According to MartyParty, Cardano holders have their assets locked in staking pools and so cannot sell off their tokens.

Cardano (ADA) has remained in the top twenty crypto assets despite its low price. This remarkable performance has fueled speculations about the actual reason behind ADA’s large market capitalization. The latest round of commentary on the chain comes from prominent figures in the crypto space, as reported by X.

Is ADA Staking Liquid and Unlocked?

A podcast by the quartet of CTO Larsson, MartyParty, Mando, and InvestAnswers sparked the latest round of discussions. According to MartyParty, Cardano holders have their assets locked in staking pools and are therefore unable to sell their tokens. He alleges that these holders were deceived and are now unable to withdraw or move their ADA, contributing to the inflated market cap.

However, Charles Hoskinson, the founder of Cardano, quickly responded to MartyParty’s claims, labeling them as “lies and disinformation.” Hoskinson maintains that Cardano staking is not locked but rather liquid and accessible at all times.

Hoskinson expressed frustration and disappointment that some individuals deliberately spread lies, and he noted that the level of disinformation about Cardano has “reached epic proportions.” He questioned how industry participants still believe people like MartyParty.

For perspective, ADA staking allows holders to delegate their tokens to stake pools and earn rewards every five days. ADA’s staked token remains unlocked, allowing users to move or spend their funds. This contrasts with other platforms, where staked assets are locked for extended periods to achieve liquidity.

Hence, MartyParty’s claim suggests that the over 22.59 billion ADA currently staked at a market price of $0.3369 is responsible for its large market cap. This volume equates to nearly $8 billion or over 60% of the capitalization in staked pools.

Cardano Community’s Strong Support

notably, several members of the Cardano community have rallied to support ADA and Hoskinson.

A user, westin.eth (@Austin86895460), confirmed that his tokens were not locked. “I can sell my ADA any time I want, and it’s staked right now,” he stated.

While others attempted to absolve InvestAnswers of spreading “fear, uncertainty, and doubt” about ADA, Hoskinson countered that he should have spoken out against the misinformation.

The Cardano community has consistently supported ADA and Hoskinson, fiercely defending the blockchain’s uniqueness compared to other platforms. For example, when Forbes published an article labeling Cardano an “Ethereum clone,” the community swiftly responded.

They highlighted that Cardano implemented its Proof-of-Stake (PoS) model years before Ethereum decided to transition to PoS. As such, Cardano could not be cloned by Ethereum. The community members also insisted that Cardano offers more predictable transaction fees and enhanced security compared with Ethereum.

Cardano's Development Strides

Despite these criticisms, the blockchain has progressed with its promised Chang hard fork upgrade. With the successful transition into the Voltaire era of decentralized governance, Cardano became one of the first blockchains to implement a token-based governance system.

In other news, Cardano remains committed to its scaling solution, the Hydra project, which aims to increase throughput. In a recent X post, Charles Hoskinson challenged anyone who could hack into the “Lace Paper Wallet ” to a $1 million bounty. This bounty showcases his confidence in the security measures and deepens the community’s trust.

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