Charles Honkinson left Cardano Foundation earlier in the month through an exclusive interview on his social pages. The decision to leave came abruptly and has surely shocked a lot of community followers as he represented the vision and drive of one of the brightest stars in the cryptocurrency universe. Over the short period in tenure the former Cardano boss oversaw a rapid phase of development of the blockchain as well as the token, ADA.
The Input Output Hong Kong (IOHK) and Emurgo released a statement as they parted ways with the Cardano Foundation citing a lack of clear vision to the goals set out for the development team and council.
It’s only a matter of time for Cardano…
A lot can go right for a cryptocurrency once tipped to be the top coin in transforming developing economies through decentralized financing and peer to peer transactions. However, with the major part of their development team in IOHK and Emurgo leaving the projects future has a dark cloud hovering around it.
In the statement by IOHK and Emurgo, Cardano community and ecosystem is blamed for stalling the overall development of the blockchain. The statement read in part,
“For more than two years there has been great frustration in the Cardano community and ecosystem. This has been caused by a lack of activity and progress on the assigned responsibilities of the Cardano Foundation and its council. Furthermore, there has been no clear indication of improvement, despite many fruitless attempts and approaches to the Foundation’s chairman and council to change this.”
Furthermore, Cardano board members and council were accused of the lack of a strategic vision in the future of the Cardano project, lack of financial planning for the funds held by the Foundation, lack of transparency in the dealings of the Foundation and ‘material misrepresentations and wrongful statements by the Foundation’s council’ including the claim of having trademarked the Cardano name.
One board controversy caused Iota (MIOTA) a place in the top 10 largest coins in market capitalization recently. A Swahili proverb goes, “Fahili wawili wakipigana nyasi huumia” translating to ‘a fight between two bulls leaves the ground bare’ shows the situation playing out painfully for the investors in ADA in future.
With the top development team gone, albeit claims of having a “too academic” approach, Cardano may struggle to find a more capable team to run the platform using the complex Haskell language used to code the blockchain. This may push the platform below expected levels with the departure a big loss for the team.
ADA to drop below the top 10 ranking?
Cardano’s current situation with IOHK puts the project at a risk of dropping from its long held top 10 market cap position. Today, the altcoin’s market capitalization stands at slightly below $2 billion while its daily traded volumes average $30 million. Just like other digital currencies, ADA has proven to be a risky investment both fundamentally & technically. The crypto coin has lost over 7% in price for the past two weeks while its monthly volatility stands at a high of 32%. At the moment, one ADA crypto coin exchanges at $0.0757 against the U.S dollar while it’s valued at 0.000058 against Bitcoin.
However, the ADA cryptocurrency market dominance might save the coin from slipping a couple positions down. As of press date, Cardano’s market share in the crypto markets is at 0.9533%, this is a relatively significant position given there exists over 1,800 digital currencies. Furthermore, ADA’s opening price about a year ago was at 0.0217, this price has since grown by over 200% & was at an all-time high of $1.15 when the markets rallied in 2017.