Charles Hoskinson, the founder of Cardano, has recently expressed frustration over the growing amount of misinformation surrounding ADA, his blockchain’s native cryptocurrency. According to Hoskinson, the extent of the false narratives has reached “epic” levels, with some claims being so far from the truth that they risk damaging the project’s reputation.

In a recent podcast, various crypto commentators—including Invest Answers, CTO Larsson, Marty Party, and Mando—discussed Cardano’s large market capitalization. One particular claim stood out: that Cardano’s high valuation is due to a portion of ADA holders allegedly being “locked” into their investments, unable to sell. This, they speculated, was a tactic used by the Cardano team to inflate the asset’s market value artificially.

Cardano’s Market Cap and Misinformation

During the podcast, Invest Answers questioned why older blockchain projects like Cardano continue to maintain such high rankings in the market. The platform’s representative pointed to Cardano’s market cap of over $12 billion, despite what they perceived as a lack of widespread adoption.

Marty Party, another panelist, took the theory further, claiming that Cardano’s high market cap is largely due to ADA holders being trapped in staking pools, unable to withdraw or sell their tokens. He argued that Cardano’s staking mechanism was designed to “trick” users into locking their funds, effectively inflating the project’s market cap.

This false assumption, according to Marty Party, is the reason Cardano remains one of the top cryptocurrencies despite his belief that the network lacks tangible adoption.

Charles Hoskinson’s Response

Hoskinson did not take this misinformation lightly. In a public response, the Cardano founder expressed frustration over the continual spread of inaccurate narratives about ADA and its staking mechanism. He stressed that Cardano’s staking system has always been transparent, offering ADA holders full control over their assets at all times.

“The amount of misinformation being spread about ADA has reached epic levels,” said Hoskinson in a tweet addressing the claims. He clarified that Cardano’s staking model is liquid, meaning ADA tokens are never locked. Unlike other cryptocurrencies that require users to lock their assets in staking contracts, Cardano’s staking system allows users to unstake their ADA at any time.

Hoskinson also questioned why individuals like Marty Party continue to be regarded as credible sources in the crypto space despite spreading baseless rumors. He expressed his disappointment at how easily false narratives can gain traction within the community.

Clarifying Cardano’s Staking Mechanism

The Cardano community was quick to rally behind Hoskinson’s remarks, with several stakeholders stepping in to correct the misinformation. One notable voice, Cardano’s Stake Pool Operator (SPO) PRIDE, highlighted the irony in the claims made during the podcast.

In a statement, PRIDE pointed out that Cardano is one of the few top-tier cryptocurrency projects offering native liquid staking, which means that ADA holders are never required to lock their tokens in staking pools. This stands in stark contrast to other blockchain networks, which often rely on liquid staking derivatives (LSDs) or liquid staking tokens (LSTs) to offer liquidity to stakers.

PRIDE emphasized the contradiction in the false narrative, pointing out that Cardano’s liquid staking model provides users with flexibility and control—values that align with the core principles of self-custody, as envisioned by Bitcoin’s creator, Satoshi Nakamoto. “How can people claim that Cardano’s high market cap is the result of locked staking when ADA holders are free to withdraw their tokens whenever they want?” PRIDE asked in the statement.

Moreover, the community has taken further steps to address these misleading claims. A community note posted on X (formerly known as Twitter) directly refuted the rumors, stating that Cardano’s staking model has always been liquid and non-custodial. This note sought to debunk the myth that Cardano’s market cap is driven by locked staking positions, reiterating that ADA holders are never forced to lock their tokens.

The Importance of Accurate Information in Crypto

The ongoing saga of misinformation surrounding ADA serves as a stark reminder of how quickly false narratives can spread within the cryptocurrency space. In an industry built on decentralized trust and transparency, the accuracy of information is paramount.

Unfortunately, the decentralized nature of the crypto world also means that misinformation can spread quickly, particularly when it comes from individuals with large followings. For projects like Cardano, which has consistently aimed to promote transparency and user empowerment, combating such misinformation is an ongoing battle.

Charles Hoskinson’s public rebuke of the false claims highlights the importance of setting the record straight and ensuring that investors have accurate information about the projects they support. Misinformation, if left unchecked, can undermine confidence and fuel unnecessary fear, uncertainty, and doubt (FUD) among investors.

As the debate around ADA’s market cap and staking mechanism continues, it’s clear that the Cardano community remains committed to educating the broader public about the realities of its system. Cardano’s native liquid staking model offers a level of flexibility that many other projects lack, making it a standout in the competitive world of blockchain technology.

Conclusion

The recent wave of misinformation regarding Cardano’s staking system and market cap serves as a cautionary tale for the crypto community. As rumors and false claims continue to circulate, it’s essential for investors and enthusiasts alike to rely on verified information and credible sources.

For Cardano and its founder Charles Hoskinson, the focus remains on building a transparent, decentralized network where users have full control over their assets—without the need for misleading tactics or “tricks.”