Charles Hoskinson, Cardano founder, in a tweet today denies the SEC’s claim that the Cardano native token ADA is a security. In the tweet, he explained how Cardano was launched as an airdrop and that no ADA token was sold in the United States.
In a recent update, Hoskinson continues to refute the allegations by the Securities and Exchange Commission stating that its native token qualifies as a security. The founder made this comment in reply to Bill Morgan’s thread where he unjustified the SEC’s claim of ADA being a security.
“The financing was done in Japan, no ada was sold, only vouchers, marketing was in Japanese, priced in Yen and Bitcoin, no one from the United States participated. Ada launched in 2017 as an airdrop two years after the voucher sale. The facts might be inconvenient to the SEC, but are facts,” Hoskinson says in his tweet.
The financing was done in Japan, no ada was sold, only vouchers, marketing was in Japanese, priced in Yen and Bitcoin, no one from the United States participated. Ada launched in 2017 as an airdrop two years after the voucher sale. The facts might be inconvenient to the SEC, but…
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— Charles Hoskinson (@IOHK_Charles) June 11, 2023
Cardano was launched in 2017 by Charles Hoskinson after he had a fallout with his former partner and Ethereum co-founder, Vitalik Buterin. The blockchain was created as a more scalable, interoperable, and sustainable blockchain that would improve upon the lapses of Bitcoin and Ethereum.
It was widely referred to as “Japanese Ethereum” because the ICO (Initial Coin Offering) was done in Japan as Hoskinson also stated in his tweet when he denies the SEC’s claim. After its very successful ICO Cardano (ADA) quickly rose to one of the top cryptocurrencies in the market and has since maintained that position.
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Though the project rose to prominence for its meticulous, peer-reviewed approach to blockchain development, it still receives criticism for being “vaporware” because there don’t seem to be any practical use cases.
Cardano (ADA) listed in Binance and Coinbase lawsuit
Meanwhile, Cardano (ADA) was listed in the SEC’s lawsuit against Binance and Coinbase, classifying it as an unregistered security. Also, this comes following the regulatory crackdown by the watchdog on other top crypto market firms.
IOG reacted to the SEC’s allegations in a statement by claiming that the ADA token is not a security “under U.S. securities regulations. They contend that their actions do not constitute the sale of securities since they have just been expanding and adding features to the Cardano blockchain, much like a software developer would do with a product.
Cardano (ADA) price today
According to live data from CoinMarketCap, the price of ADA today is $0.2834. Amid the unsettled claims by the SEC, the price is up 8.39% in the last 24 hours. What’s more, Cardano is ranked #7 on the CoinMarketCap chart with a live market cap of $9,892,267,086.
Source: CoinMarketCap
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications such as Coinfomania and Crypto News Guru, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.