Cardano founder Charles Hoskinson asserts that only cryptocurrencies with integrity and utility will survive the ongoing market storm. Amid a significant market decline, Hoskinson’s views highlight the need for real value in cryptocurrencies. Within 24 hours, the global crypto market cap plunged by 16%, hitting $1.8 trillion. Most cryptocurrencies are currently trading in the red, experiencing substantial losses.
In a recent X post, Hoskinson emphasized that the negative trends in traditional financial markets are affecting crypto performance. For instance, Japan’s stock market has faced its worst losses since 1987, adding pressure on the crypto market.
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Effects Of Poor Financial Policies
Hoskinson pointed out that poor policies, such as excessive money printing, are also impacting the crypto market. He believes that while fiat currencies will likely falter, cryptocurrencies backed by utility and integrity will eventually recover.
“Markets are not above the reality of unlimited money printing, hundreds of false unicorns, and the Ponzi scheme that is the modern economy. Cryptocurrencies are the way out. The real ones have integrity and utility built in and will weather any storm decade by decade. Fiat currencies will not,” Hoskinson stated.
Hoskinson also criticized the tendency to blame project founders for declining prices amid the market meltdown. He argued that the crypto community should focus on the macroeconomic factors affecting price performance rather than pointing fingers.
Massive Losses In The Crypto Market
The cryptocurrency market is enduring its worst trading day since the year’s start. Data from CoinGecko reveals that over $300 billion has been wiped out in the last 24 hours due to high price volatility. Bitcoin’s price dropped by 13%, trading at $52,823—its lowest since February 2024.
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This price drop led to the liquidation of over $300 million in leveraged BTC longs. Meanwhile, Ether suffered the most among the top ten largest cryptos by market cap, with a nearly 20% price drop. Cardano (ADA) and XRP also fell by 15% and 14%, respectively.Concerns about a crash in global stock markets are compounded by fears of recent selloffs by Jump Crypto.
The crypto trading firm moved hundreds of millions of dollars worth of crypto to exchanges in recent days, further fueling bearish sentiment.
