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Cardano’s Hoskinson unlikely to donate crypto to Ukraine for this reason

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Source: Unsplash

Crypto projects, stakeholders, and founders have all made a splash after Ukraine asked for crypto donations to help it resist Russia’s invasion. The numbers speak for themselves as more than $24 million in crypto has reportedly reached the country.

Now, the Cardano community is feeling the pressure to donate. As is usually the case, founder Charles Hoskinson put out a video to explain his point of view.

A warning to the people

Hoskinson acknowledged that others – like Polkadot founder Gavin Wood – had donated to Ukraine, but made it clear that he was not about to drop a few million in ADA any time soon.

In particular, Hoskinson pointed out that he wasn’t sure whether the donations would only be used for citizen welfare or controlled by a “puppet regime” in the future. He also mentioned it was easier to teach a man to fish than to give him fish. Hoskinson warned,

“Given the nature of cryptocurrencies, it’s entirely possible [that] if the Ukrainian government is invaded, for the wallets that hold those funds in Kiev to just basically disappear and people will assert that the keys have been lost or the people who knew them are dead, and in reality they actually were stolen.”

Hoskinson instead suggested that the Cardano community could donate to help Ukrainian refugees in other countries.

And then there were nine

All said and done, Hoskinson’s comments do raise the question of whether or not an ADA donation would be useful to Ukraine.

At press time, Cardano’s ADA was the ninth biggest coin by market cap, trading at $0.8808. The coin fell by 4.06% in the last 24 hours but rose by 5.06% in the last week.

Data from Santiment shows that both ADA’s price and active address count have been falling for some time now. However, active addresses did see a mild increase when compared to the lows following the December crash.

Source: Santiment

Looking at whale transactions count, we can see that they are few and far between. However, whales did briefly wake up as ADA’s price enjoyed a short rally towards the end of February. Despite that, the coin dropped again afterward. In short, the whale transaction count didn’t see a major increase post 22 September 2021.

Source: Santiment

A Tron of trouble

There’s been considerable pressure on crypto founders and influencers to donate funds to Ukraine’s official crypto addresses. Some high-profile supporters so far included TRON founder Justin Sun and Polkadot founder Gavin Wood.

Sun, however, voiced his displeasure and made it clear that the Ukraine administration should have shown its gratitude to Tron donators during the [now-canceled] airdrop.

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Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.

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