Cardano Founder Threatens Retirement Over Treasury Overhaul, Price Drops 9%

Charles Hoskinson, the founder of Cardano, has issued a stark warning to the community, suggesting that he may retire if his proposed overhaul of the ADA treasury is not approved. Hoskinson's plan involves divesting a portion of the 1.7 billion ADA treasury and investing it in assets outside of Cardano, including Bitcoin, stablecoins, and cash. The profits from these investments would then be reinvested in ADA or used for further investments at a later date.

Hoskinson's frustration was evident during his announcement, where he expressed feeling "tired" and indicated that if his proposal is rejected in a governance vote, he would conclude that he no longer provides value to the ecosystem and would retire. Although there are currently no formal plans for a vote, such discussions could emerge during the Rare Evo conference in August.

The Cardano price has reacted negatively to Hoskinson's threat, falling by nearly 9% since his video was posted on Monday. The altcoin, which is the 11th-biggest in the market, has seen a 12% drop in the past week and an 18% decrease in the past month. Despite these fluctuations, ADA retains a 54% increase over the past year, indicating a positive long-term price prediction.

Hoskinson's potential retirement casts a shadow over Cardano, as his withdrawal could rob the platform of future dynamism and development. However, Cardano's fundamentals continue to provide ADA with a very positive long-term price prediction. The ongoing Israel-Iran conflict may delay a potential rebound, but if the market stabilizes, ADA could return to $1 by August. Positive fundamental news, such as the adoption of Hoskinson's proposal, could see ADA reach $2 by Q4 and $3 by the end of the year.