During Mainnet 2022, in New York, Hoskinson We talked about what people misunderstand with Cardano.
Discussion topics ranged from the advantages of starting Bitcoin-based (UTXO), the slow and methodical principle considering an upgradeable path before it is needed, and the nuances of smart contract design.
“Can the hard and heavy work be done now so that easy solutions can be plugged in? I am trying to have a
Of particular interest, however, was Hoskinson’s take on venture capitalist funding.
VCs are not interested in Cardano
Hoskinson spoke with Ryan Selkis, a passive-aggressor who co-founded research platform Messari, to explain why some VCs overlook the Cardano ecosystem.
The CEO of Input Output (IO) said, “The problem is that VCs seek short-term profits through unfair early distributions, before detailing dumping on retail bag owners. There was no such thing,” he said.
Hokinson cites unnamed examples that have been brought to market at high valuations to back up his claims. This was followed by insiders dumping the tokens, causing a price drop and early investors getting rich.
What happened to EOS echoes Hoskinson’s account. The $4.4 billion annual initial coin offer in 2018 is the largest funding to date.
Given Cardano’s “egalitarianism” [token] No such opportunity exists, leading to projects being overlooked by VCs.
“It was a fair distribution of Cardano. It has a large Gini coefficient and is one of the most circulated currencies…so there was no insider circulation to go and sell.”
of Gini coefficient Refers to a measure of wealth distribution. In cryptocurrencies, it is used to quantify chain concentration, with a reading of 1 indicating absolute inequality. Conversely, on the other side of the spectrum, a reading of 0 indicates a perfect distribution.
things are set to change
But things are changing, Hoskinson said, as “greed is their thing” and making money is the LP’s “fiduciary duty.”
The spark for this movement came when the Cardano dApp ecosystem took off and the project was valued at billions of dollars. Hoskinson predicts this will happen within the next two years.
“The time they get involved is when multiple Cardano dApps start getting multi-billion dollar valuations. There is something to invest in, so there is something to connect. So maybe 2023 or 2024.”
In any case, IO’s CEO pointed out that the ecosystem already has its own community-run VC. catalyst The fund currently has $500 million in ADA available to back startup projects looking to build on Cardano.
