Analyzing the Impact of Cardano Community’s Open Letter on the Future of ADA Cryptocurrency
In recent times, the ADA Community has been frustrated by the Cardano Foundation. The cause of the friction between these parties is the disappointing performance of the Cardano (ADA) digital currency over the past few months.
The Cardano network is based on three pillars, namely IOHK, Emurgo and Cardano Foundation. These three control the entire Cardano system. Recently, IOHK and Emurgo published an open letter in which they criticized the Cardano Foundation. The letter was addressed to the Cardano Community and was posted on social media by Charles Hoskinson, the managing director of IOHK.
The main reason behind the establishment of three pillars was to democratize decision-making in the Cardano ecosystem. The role assigned to the Cardano Foundation was acquiring rights for market participants, advocacy, supervisory authorities, and public relations. According to the letter, the Foundation has not fulfilled its role.
The letter states that the Cardano Foundation contradicted the objective of decentralization because it was entirely controlled by ‘Mr. Parsons’ since July last year. This is threatening to cause a break up between the pillars. Emurgo and IOHK are already embarked on implementing measures to ensure that ADA grows in the future. To this end, Emurgo has already stead hiring qualified community members to help with the design. Likewise, IOHK is mulling over the possibility if taking staff belonging to the Cardano Foundation.
Following the course of action taken by Emurgo and IOHK, there have been many questions regarding the role of the new appointees. One open letter suggested that these managers should be allocated roles in public relations. Their mandate would be attracting new investors to the Cardano project. This would be done through planning events and awareness campaigns informing prospective users on Cardano and its features.
As of now, IOHK and Emurgo are allegedly planning to launch initiatives in Japan so that local investors can access crypto exchange platforms. The organization intends to leverage the liquidity provided by digital currency exchanges. The Cardano Foundation is expected to voluntarily surrender to Swiss authorities to facilitate an investigation on the source of their funds. This process should be public so that the Cardano Community can participate.