Cardano Founder Hits Back at Crypto Critics After Bank Failures

Cardano founder Charles Hoskinson has taken a jab at crypto critics in a recent tweet.

Hoskinson compared the operations of major cryptocurrency firms like Circle, Paxos and Tether with those of banks, emphasizing that these firms have endured under conditions that largely caused banks to fail.

Circle/Paxos/Tether: “we’re going to hold collateral mostly in cash and T-bills.”

Nothing happens.

Government: “CRYPTO IS SUPER RISKY.”

Banks: “we’re going to hold collateral mostly in longer-dated TradFi bonds.”

Banks fail.

Government: “SEE, CRYPTO IS SUPER RISKY.”

— Charles Hoskinson (@IOHK_Charles) March 13, 2023

He inferred that, despite the resilience of these crypto companies, the perception regarding crypto has not changed a bit.

In January, the White House released a statement titled, "The Administration’s Roadmap to Mitigate Cryptocurrencies' Risks." Much of the legislative advice provided by the administration was directed at the U.S. Congress.

Bank failures

SVB is the most recent bank to go under over the past few days. Its sudden collapse, which left billions of dollars belonging to businesses and investors stranded, made it the largest bank to fail since the 2008 financial crisis.

In the past week, crypto-friendly Silvergate Capital said it was winding down operations and liquidating its bank. And on Sunday, U.S. regulators shut down Signature Bank, to prevent contagion of the banking sector.

In related news, the defunct Silicon Valley Bank's U.K. subsidiary will be saved by global financial behemoth HSBC through a recent acquisition.

On March 13, HSBC formally stated that Silicon Valley Bank UK would be acquired by its subsidiary, HSBC UK Bank, for one British pound ($1.21).