A new scandal involving popular cryptocurrency Cardano (ADA) has erupted on social media. The case concerns the ADA staking mechanism device, with some crypto-entertainers stating that the only reason why the token is still at the top of crypto rankings is that its stakers cannot sell it because their assets are locked in staking.
Moreover, the unlocking should happen in October and then, according to these analysts, it remains to be seen whether the Cardano token is being held for real.
Tomiwabold OlajideStatements like this have caused quite a stir in the ADA community and have even caught the attention of the founder of the blockchain, Charles Hoskinson.
Thus, he stated that the lies and misinformation about Cardano have reached epic levels. Staking is not locked, but they still lie, Hoskinson claims.
“Why does anyone trust these people anymore?” he asked at the end of his rant. His stance has been supported by many within the Cardano community, who view the allegations as baseless and harmful to the project's reputation.
Cardano: Staking
Cardano staking lets ADA holders delegate their tokens to a stake pool to help secure the network and earn rewards every five days. Unlike other systems, staked tokens are not locked, so users can still spend or move their ADA.
Currently, the number of Cardano tokens in staking is 22.585 billion ADA. At a price of $0.338 per Cardano token, this translates to $7.63 billion in digital assets. With Cardano's capitalization of $12.18 billion, this means that 62.64% of the capitalization is in staking.
The high staking rate suggests that many believe in Cardano's long-term potential and are willing to lock up their tokens in exchange for potential rewards.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya