In a recent video titled “Legacy is Eating Crypto,” Charles Hoskinson, the founder of Cardano, expressed worries about how power in the cryptocurrency industry is becoming more centralized. Hoskinson pointed out that just a few big companies have a lot of control in sectors like Bitcoin and stablecoins, which he thinks is risky for users and goes against the idea of decentralization.
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Centralization of Stablecoins
Hoskinson talked about how stablecoins backed by assets, like Tether (USDT) and USD Coin (USDC), are dominating the market. He mentioned that USDT and USDC make up 70% of all on-chain volume but only 10% of the crypto industry.
Hoskinson is worried about regulations affecting these stablecoins because the companies behind them have to follow laws in the places they operate. This means that if there are new rules, it could affect people who use these stablecoins.
Spot Bitcoin ETFs and Big Investors
Hoskinson also criticized the recent rise of spot Bitcoin exchange-traded funds (ETFs). He said big institutional players like BlackRock and Fidelity have bought a lot of Bitcoin, which has helped drive up prices. But he warned that this could lead to more power being in the hands of a small number of big players in the Bitcoin market.
Challenges to Decentralization
Hoskinson thinks that the growing centralization of the crypto industry is a threat to its decentralized nature. He believes that having a few big players could stop new ideas and limit how much crypto can change finance. Hoskinson said it’s important for the crypto community to stay watchful and work on keeping the industry decentralized.
Unlike many other crypto projects that are more centralized, Hoskinson said Cardano is focused on being decentralized. He explained that Cardano is made to be a platform where individuals and groups can be part of making decisions and running the network. Hoskinson is confident that Cardano’s decentralized approach will help it succeed even with the challenges of centralization.
Hoskinson’s thoughts on the crypto industry bring up important questions about centralization risks and why it’s crucial to keep crypto decentralized. As the industry keeps changing, we’ll have to see how these worries are dealt with and whether Cardano’s decentralized approach works out.
ADA Short-Term Price Outlook
Right now, Cardano (ADA) is stuck between a descending channel and some important support levels, making its short-term future uncertain. Recently, it tried to break out of the channel but failed, leaving things unclear.
ADA’s current price is around $0.56, and it’s facing a tough barrier at $0.62. If it can get past that, it might climb to $0.68. But the 50-day SMA ($0.53) is a strong support level, and recent buying suggests ADA might bounce back.
Ultimately, if ADA can keep momentum above $0.62, it could mean the bulls are back in control. But if not, bears might pull it back into the descending channel. Remember, these are just short-term trends, and other factors could change ADA’s price. Always do your own research before investing.
Read Also: First-Ever ICO on Bitcoin Blockchain Launches in Under 2 Hours
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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