Cardano CEO Slams Token Burning, Equates It to Stealing Food

20 September 2021 | Updated: 20 September 2021

The founder and CEO of Cardano (ADA), Charles Hoskinson, has spoken strongly against the sweeping idea of deflationary economics in the cryptocurrency industry. Mr. Hoskinson made his opposing stance known in a recent AMA (ask me anything) session on YouTube, comparing the practice of token burn to stealing food. He noted that the activity reflects human greed and ignorance, explaining that:

“We are so glad that you can tell us that we gotta destroy other people’s money so that you can make a little extra money and then sell the ADA and move on to something else.

The token burn or deflationary tokenomics proposes to remove a certain amount of tokens from the circulating supply making the existing tokens more valuable. Ethereum ($ETH) became the latest to join on the deflationary token bandwagon post-London Hardfork, and it has already burnt over $1 billion worth of Ether since Eip-1559 implementation. Apart from $ETH, Binance also burns its BNB supply on a quarterly basis.”

Hoskinson has the habit of being crude in his criticisms and does not mince words despite the barrage of criticism and trolling he gets. Nonetheless, the CEO previously encouraged developers to create a “Proof-of-Burn” that allows users to upload their ADA and destroy it permanently. That said, he noted that those interested are free to partake but at no one else’s cost.

Key Cardano Levels to Watch — September 20

Along with most of the cryptocurrency market on Monday, ADA has come under renewed bearish pressure, as the fourth-largest cryptocurrency fell by -10% below the critical $2.300 support. Cardano consistently recorded lower high asking or descending trendline over the weekend.

ADAUSD – 4-Hour Chart

That said, bears appear to have posted a slowdown at the $2.100 level. It is not clear whether this came due to bullish reemergence or bearish repositioning for further declines. Buyers need to exercise patience to see if ADA resurfaces above $2.200 in the coming hours, which could restore a modest bullish outlook.

Meanwhile, our resistance levels are $2.200, $2300, and $2.350, and our support levels are $2.100, $2.000, and $1.950.

Total Market Capitalization: $1.98 trillion

Cardano Market Capitalization: $67.8 billion

Cardano Dominance: 3.4%

Market Rank: #4

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.