Cardano Defies $600M ADA Controversy with Steady Institutional Inflows

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Despite facing backlash over a $600 million ADA scandal, Cardano investment products continue to attract institutional capital. Data from CoinShares for the week of May 30 reveals that Cardano recorded $0.1 million in inflows, a modest figure that reflects persistent interest amid serious allegations.

Three Consecutive Weeks of Positive Flows

Institutional investors have continued backing Cardano even as controversy swirls. Over the month of May, Cardano products recorded $2 million in inflows, pushing the year-to-date total to $73 million. Although these numbers do not reflect a surge in investment, they suggest that confidence in the project has not waned significantly.

This sustained momentum emerges amid scrutiny surrounding Cardano’s founder, Charles Hoskinson.

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Allegations of ADA Misappropriation Surface

Earlier in May, NFT artist and independent analyst Masato Alexander accused Hoskinson of using a covert function during the 2021 Allegra hardfork to move 318 million ADA, worth approximately $619 million at the time, from dormant ICO wallets into reserves controlled by Input Output Global (IOG), his company.

Hoskinson swiftly denied the allegations, asserting that 99.8% of the ADA had been returned to the original buyers and that the remaining tokens had been transferred to Intersect, an organisation within the Cardano ecosystem. He also issued a warning, threatening legal action if Alexander continued to push what he termed defamatory claims.

Community Demands Transparency

While Hoskinson maintains his defence, critics argue that the community was kept uninformed, raising concerns over transparency and accountability. They note that no public audit has confirmed the transaction history, fueling suspicions within the broader crypto space.

Responding to mounting pressure, the Cardano Foundation has announced plans to release a full audit of its treasury to restore confidence and address lingering doubts.

Final Thoughts

Although controversy has cast a shadow over Cardano, investor interest hasn’t disappeared. The consistent inflows indicate that institutional players are still closely monitoring the project. Whether the forthcoming audit will validate Hoskinson’s claims and reassure the community remains to be seen.