Cardano founder Charles Hoskinson held a surprise AMA on his official YouTube channel to answer a variety of questions from the community. The session lasted for over two and half hours, and he touched upon various developments within and outside of Cardano (ADA).
About markets being rough
Hoskinson started by addressing the current state of the market, talking about the recent crash. In his opinion, crypto markets should ideally run counter-cyclic to the stock market, i.e. when stock markets go down, crypto should be up, and vice versa. However, that is not what is happening, as both, the stock market and cryptocurrencies, seem to be on a downward trend. This, in his opinion, doesn’t make a lot of sense. He thinks it is a result of an overheated market from last year’s bull run, combined with institutional pairings.
While answering the question about the markets being rough, Hoskinson replied (in regards to inflation),
“It’s a rough life. You keep your money in US Dollars, and you lose 20%. They say it’s 7%, but it really is 20%.”
About crypto winter
Another individual asked Hoskinson if crypto winter was better for good projects. To this, the Cardano founder replied,
“Yes! Cause you don’t have the moon boys.”
He went on to say that in a crypto summer or spring, you have incredibly large salaries and “crazy valuations”, but also a lot of noise. And that most of the people at the conferences are “moon boys”, who are only there to chase the money.
Hoskinson went on to say that in crypto winter, the only people left are the believers. They are there for philosophical reasons, and to build projects. With the “moon boys” not around, he says, there is room for community and real people who are motivated by things bigger than money.
The negativity and the toxicity that comes with crypto summers and springs make it harder to hire good people, he said. He further stated,
“I enjoyed $250 Bitcoin, hated $20,000 Bitcoin, hated $64,000 Bitcoin”
How does Atala Prism add value to Cardano
One individual also asked Hoskinson about Atala Prism and its value within Cardano. Hoskinson replied that it adds value to Cardano in three ways.
Firstly, it adds value by user acquisition. This is important as Cardano grows, and its 13 million users become an even larger number.
Secondly, he said that it helps in creating an identity system, by which there is compliance, and that leads to regulated activities. Hoskinson explains the need for one-click exchange and the frictionless use of cryptocurrencies.
Thirdly, Atala Prism helps in regulated Dapps. Users can have decentralized trading with no custodial or third-party risks, while regulation happens at only the entry and exit points of the system.
Hoskinson believes that identity is key for all credit relationships, and hence more effort should be put in that direction.
To watch the entire AMA session, visit Charles Hoskinson’s official YouTube channel.