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HomeNewsCrypto Community Reacts as Cardano Founder Burns $100M in Meme Tokens

Crypto Community Reacts as Cardano Founder Burns $100M in Meme Tokens

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  • Cardano founder Charles Hoskinson burned $100 million worth of the ADA meme coin, CHARLES, to distance himself from speculative hype, triggering mixed reactions and an 83% token price crash.
  • Meanwhile, ADA is showing bullish momentum, with analysts predicting a potential rally to $1.30 if key resistance levels are broken.

On January 30, Charles Hoskinson took a bold step by burning 900 billion CHARLES tokens, which were airdropped to him by the token’s anonymous creator. The meme coin, which sought to capitalize on his name, skyrocketed in value to a fully diluted market cap of $71 million, with a $5.14 billion trading volume before the burn.

Rather than endorsing the token or cashing in on the hype, Hoskinson set up a burner wallet and live-streamed the process of sending all 900 billion tokens to oblivion. Expressing his disbelief over the situation, he sarcastically remarked:

“So I’m sitting on 900 billion of that. You’ve lost your damn mind.”

Why Did Hoskinson Burn These Tokens?

Hoskinson’s decision stemmed from a desire to uphold Cardano’s reputation and distance himself from hype-driven tokens. With the rising trend of celebrity-influenced cryptocurrencies, such as the TRUMP and MELANIA meme coins, Hoskinson made it clear that Cardano would not be part of such speculative frenzies.

He emphasized that hype does not equate to value, urging the crypto community to be cautious about blindly following projects with no real utility. His message was clear: Cardano is built on strong fundamentals, not short-lived market mania.

“So, I am no longer a founder of this coin, I suppose. Congratulations. So, anyway, don’t do that again, you bastards.”

Community Reactions and CHARLES Token Crash

Hoskinson’s move triggered a wide array of reactions. Some members of the crypto community praised his decision, viewing it as a stance against low-credibility projects attempting to ride on Cardano’s name. However, others questioned whether the tokens could have been used for charitable purposes instead of being burned.

Following the burn, the CHARLES token price plummeted by 83% within 24 hours, according to Taptools.io, further highlighting the speculative nature of such meme coins.

What’s Next for Cardano (ADA) Price?

Despite the market turbulence, Cardano’s native token ADA is showing signs of recovery. After experiencing a 4% drop, ADA is currently trading at around $0.96. Technical indicators suggest a bullish cup and handle pattern forming, signaling a potential breakout.

Analysts predict that if ADA surpasses the $1.10 resistance level, it could rally to $1.30, with an eventual target of $1.7961 if momentum continues. However, failure to hold above the key support level at $0.90 could lead to further downside.

Hoskinson’s decision to burn $100 million worth of CHARLES tokens underscores the ongoing issue of low-credibility cryptocurrencies exploiting popular figures. While some criticized the act, it ultimately reinforced Cardano’s commitment to legitimacy and long-term value. Meanwhile, ADA’s bullish outlook presents an optimistic scenario for investors watching the market closely.

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