Cardano Founder Denies Hoarding Allegations Amid 1.3 Billion Token Airdrop Surge

Generated by AI AgentCoin World
Thursday, Aug 21, 2025 6:17 am ET1min read
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Aime RobotAime Summary

- Cardano founder Charles Hoskinson denied hoarding Midnight tokens during the 1.3B-token Glacier airdrop, emphasizing retail-focused distribution across ETH and BTC networks.

- The project excludes institutional allocations and uses personal funding instead of ICOs or venture capital, prioritizing decentralization and community engagement.

- ADA's 15% price surge and increased on-chain activity reflect market optimism, while regulatory silence from SEC/CFTC suggests low compliance risks for the initiative.

- By promoting cross-chain interoperability and privacy tech, the airdrop challenges traditional governance models and advances community-driven crypto development.

Cardano founder Charles Hoskinson has refuted allegations of hoarding Midnight tokens during the project's recent airdrop initiative known as Glacier. The token airdrop, launched at Consensus 2025 and Paris Blockchain Week 2025, has drawn widespread participation, with over 1.3 billion tokens claimed by investors [1]. The distribution strategy explicitly excludes institutional and insider allocations, focusing instead on retail investors across multiple blockchain networks such as

Ethereum
(ETH) and
Bitcoin
(BTC) [1]. This approach reinforces Cardano’s emphasis on decentralization and direct community engagement.

Hoskinson is personally funding the project rather than pursuing venture capital or initial coin offering (ICO) strategies. “Instead of doing an ICO or seeking venture funding, I will use my own personal funds to build, release, complete this project, and airdrop to those eight blockchains,” he stated [1]. This move aligns with broader industry trends that prioritize retail accessibility and reduce reliance on traditional funding mechanisms. By airdropping tokens directly to retail holders,

Cardano
aims to foster greater on-chain activity and market confidence.

Market observers have noted a surge in interest following the announcement. The price of

ADA
, Cardano’s native token, rose more than 15% in the wake of the airdrop announcement, reflecting investor enthusiasm and optimism about the initiative [1]. On-chain liquidity and activity also increased, signaling heightened engagement from the decentralized finance (DeFi) and blockchain communities.

The project’s strategic exclusion of institutional stakeholders and venture capitalists marks a departure from conventional airdrop practices. While regulatory scrutiny remains a potential risk, no formal compliance reports have been filed by the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) regarding privacy or governance measures of the Midnight token [1]. This absence of regulatory intervention suggests a relatively unencumbered environment for the project’s rollout.

Financial and technological observers highlight the potential for a shift in blockchain governance models through this initiative. By promoting cross-chain interoperability and employing privacy-enhancing technologies, Cardano and Hoskinson’s leadership seek to establish new benchmarks in crypto governance [1]. The initiative underscores a broader movement toward community-driven, transparent, and inclusive blockchain development.

Source: [1] Cardano Founder Denies Midnight Token Hoarding Allegations (https://coinmarketcap.com/community/articles/68a6ef487b5cbc7076446384/)