Cardano's Price Drops 3.3% Amidst Allegations, Audit Clears Founder

Cardano's latest price was $0.8108, down 3.309% in the last 24 hours. The Cardano network has been under scrutiny due to allegations of mismanagement of funds through the ADA Voucher Program. These claims, which surfaced in May 2025, suggested that founder Charles Hoskinson had unilaterally used genesis keys to control 318 million ADA tokens worth $619 million at the time. The allegations centered on the 2021 Cardano Allegra Hard Fork, which critics claimed erased original ICO UTXOs holding 318 million ADA tokens. The accusations suggested that Hoskinson swept these funds into Cardano reserves through a two-step process involving the hard fork and subsequent MIR transactions. Hoskinson responded to these allegations by stating that original buyers redeemed 99.8% of ADA vouchers over seven years, and the remaining 0.2% were returned to the Token Generation Entity after the statutory waiting period and donated to Intersect through established procedures. He also warned of potential legal action against accusers, stating that IOG would pursue litigation if critics continued asserting theft allegations. The controversy prompted broader discussions about governance and transparency in blockchain projects, particularly regarding founder control over protocol-level decisions. The Cardano Foundation distanced itself from the operational aspects of voucher redemption, noting that IOG had led the effort to locate remaining voucher holders over four years. The foundation welcomed IOG’s pledge for third-party auditing of all MIR transactions and fund administration.

An independent third-party audit conducted by McDermott, Will & Schulte alongside BDO accountants cleared Hoskinson of all major allegations. The 128-page audit confirmed that 99.7% of the 14,282 ADA vouchers were legitimately redeemed. The report also clarified the fate of the alleged missing 318 million ADA, stating that the tokens were moved into reserves after the Byron era. A Post-Sweep Redemption Project was later created to handle any unclaimed vouchers. The audit findings placed focus back on Cardano’s fundamentals and market trajectory. With a clean audit outcome and analysts tracking key technical ranges, ADA continues to be closely followed heading into the next cycle. Hoskinson addressed the audit findings on X, saying he was waiting for apologies. His remarks reflected frustration over accusations that had circulated for months. The independent report countered claims that insiders diverted tokens or tampered with upgrades. The outcome has placed focus back on Cardano’s fundamentals and market trajectory. With a clean audit outcome and analysts tracking key technical ranges, ADA continues to be closely followed heading into the next cycle.

Cardano’s network development is seen as consistent with the technical setup. The combination of chart structure and on-chain activity has led analysts to suggest that the asset remains positioned for growth if resistance zones are surpassed. Analysts pointed to short-term cushions around $0.77 and $0.70. A broader demand area extended from $0.50 to $0.69, where Cardano price had consolidated in earlier months. These levels were seen as potential buffers if momentum weakened. Analysts said the presence of prior accumulation in those ranges could help stabilize the token. Still, they noted that upside confirmation would only arrive with sustained closes above $0.86. Several indicators reinforced the possibility of an improving trend. On the weekly chart, Bollinger Bands placed Cardano price above the midline at roughly $0.74. The upper band stretched near $0.96, positioning current price action in the upper half of the range. Analysts said this configuration typically hinted at a mild bullish bias. The MACD also supported a constructive view. The MACD line stayed above the signal line, with both in positive territory. A green histogram underlined that buying interest had remained intact through the recent sessions. Whether this shift extended toward $1.00 would depend on follow-through in volume and the ability of bulls to absorb resistance pressure. As per analyst observations, a combination of a TD Sequential signal, strengthening momentum gauges, and steady demand zones positioned Cardano price for a potential trend reversal.

Cardano’s ecosystem continues to evolve with the introduction of smart contract functionality in the ALL4 Mining upgrade. This development has led to a rapid growth in decentralized applications within the network. The Cardano ecosystem, centered around its native ADA token, offers cloud mining pool rewards for network validators. Cloud mining allows users to rent computing power from large-scale mining farms over the internet. Investors don’t need to purchase ASIC mining rigs or build their own mining farms; they simply sign a contract with a service provider. The platform takes care of the hardware, electricity, and maintenance, while users receive a proportional share of the mining profits. Key benefits include no need to get started, flexible contract options, and comprehensive security. This model is rapidly becoming a popular choice for cryptocurrency enthusiasts. The Cardano Foundation has been actively involved in promoting the growth and development of the Cardano ecosystem, focusing on education, community building, and strategic partnerships. The foundation has also been working on improving the usability and accessibility of the Cardano network, making it easier for developers and users to interact with the platform. The Cardano ecosystem continues to attract attention as analysts point to its potential breakout. Crypto analyst Michaël van de Poppe stated that Cardano remains overlooked by many but continues to strengthen. ADA has re-entered a key trading range with a possible floor at current levels. Resistance levels near $0.92 and $1.24 are being watched as possible breakout points. Traders indicated that the green support range may present an optimal entry should broader markets correct. Analysts added that ADA could be preparing for upside if momentum builds, with 2025 and 2026 viewed as possible years for new highs. Fundamentally, Cardano’s network development is seen as consistent with the technical setup. The combination of chart structure and on-chain activity has led analysts to suggest that the asset remains positioned for growth if resistance zones are surpassed.

The Cardano ecosystem witnessed significant developments in early September 2025, centered on governance, ecosystem initiatives, and adoption discussions. A key governance development involved the resolution of a dispute concerning the project's founder, Charles Hoskinson. An audit successfully cleared Hoskinson of allegations regarding the potential misappropriation of $600 million worth of ADA tokens, bringing closure to the matter. On the ecosystem front, Cardano showcased tangible progress with the "I Can Aiken" initiative. The first pilot of this new protocol was publicly unveiled at the Cardano Ecosystem Guide event held earlier in January 2025, where 2,000 copies of the associated book were distributed. This initiative represents ongoing efforts to foster education and development within the Cardano community. Discussions about Cardano's market position and long-term trajectory continued actively. Observers noted significant trading activity surrounding the asset, reflecting renewed market interest. However, the primary focus within the community remains firmly on the project's development milestones, network adoption, and the expansion of its overall ecosystem. These fundamental factors are widely regarded as crucial for Cardano's sustained relevance and ability to deliver long-term value. While broader analyses often compare various blockchain projects, Cardano itself continues to generate interest based on its technological approach and community governance model. Analysts emphasize that Cardano's future depends heavily on the consistent achievement of its development roadmap and its ability to attract and retain users and developers for its decentralized applications.