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Charles Hoskinson Responds to Major Critic Who Claims Cardano (ADA) Is Security

Wed, 06/21/2023 - 12:32
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Yuri Molchan
Cardano founder again puzzled that ADA is called security, this time by crypto start-up co-founder
Charles Hoskinson Responds to Major Critic Who Claims Cardano (ADA) Is Security
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Charles Hoskinson has addressed the co-founder of Valkyrie fintech, who claimed that the "issuance of Cardano was illegal," and he may be prosecuted for it.

Almost two weeks ago, the SEC claimed that Cardano's native token ADA is a security, but Charles Hoskinson, the founder of IOG whose team created Cardano, rejected those allegations.

ADA is security, its team made a lot of money on it: Steven McClurg

Twitter user "swan.ada" published part of a recent podcast hosted by entrepreneur Mario Nawfal and crypto trader Scott Melker, in which co-founder of Valkyrie Steven McClurg was one of the guests.

When asked about crypto and securities, he stated that he believes many cryptocurrencies to be securities under U.S. law, and Cardano's ADA to be among them as one of the biggest coins that have been mentioned by the SEC recently.

In particular, McClurg mentioned the way Cardano was issued and distributed, adding that Charles Hoskinson and the dev team made a lot of money on selling ADA. McClurg goes not believe, though, that should Cardano be sued and ADA creators prosecuted, builders of apps on that blockchain should/would be affected.

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Hoskinson's response to McClurg

Hoskinson tweeted a response to that allegation, stating, "Notice they never use facts or fully explain. Also who registers? What gets filed and disclosed?"

A week ago, when refuting the SEC's allegations about Cardano being a security, Hoskinson tweeted that the original financing came from Japan when the blockchain launched in 2015.

When Hoskinson conducted an ICO for Cardano in Japan, the blockchain earned the nickname "Japanese Ethereum." The SEC accused ADA of being a security that was sold on Binance and Coinbase, among other "securities" — when the regulator sued these major exchanges recently, claiming they have violated U.S. securities law.

Some have also been accusing Hoskinson of "searching for aliens" in the Pacific Ocean recently, therefore stating they would rather invest in other blockchains but not Cardano. In reality, Hoskinson has been on an expedition to look for a "interstellar meteor" that fell into the ocean recently.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at