Hoskinson says Low liquidity allows Crypto founders to manipulate price & Burn tokens

Charles Hoskinson responded against a person who wants the Cardano project team to burn ADA tokens.

Charles Hoskinson is the Chief executive officer of IOHK, a developer team behind Cardano blockchain. Hoskinson is also one of the co-founders of the Ethereum blockchain but he is no longer in the Ethereum project. IOHK believes to bring real development works instead of following hype & promotional strategies, to push the real adoption of the Cardano blockchain.

Recently Charles Hoskinson again responded against the people who are willing to see the burn of ADA token supply and suggested contributing to the ADA token burn initiative from their own wallets. Hoskinson also said that ADA is a community wealth & we can’t destroy it.

For anyone looking to burn #ADA
Follow the instructions and do exactly as this man says #Cardano $ADA #CardanoCommunity pic.twitter.com/BuYaxHPK1y

— Darren N (@CryptoIRELAND1) September 1, 2022

In response, a crypto trader claimed that Hoskinson’s opinion is not correct exactly because burning ADA tokens doesn’t mean to destroy community wealth, instead it will increase the wealth of the rest of ADA token holders.

The astonishing power of ignorance is revealed when someone as intelligent as Charles Hoskinson believes burning coins is destroying someone's property. The analogy isn't even correct; it's more like destroying part property to make the rest more valuable than original.#Cardano

— PerAsperaVinco (@PerAsperaVinco) August 31, 2022

Further, Hoskinson responded to these facts and said that burning ADA tokens is not easy because all the ADA tokens are in the hands of actual people and burning ADA means we have to take ADA from people and then burn it, which is not possible.

The astonishing power of ignorance is revealed when people cannot grasp that there is no magic reserve of Ada floating out there. All Ada is in the hands of owners, actual people, to burn it would require it be taken from them and destroyed https://t.co/kGzwFyg3nS

— Charles Hoskinson (@IOHK_Charles) August 31, 2022

Another ADA lover asked the Cardano founder how other crypto projects are doing. Then Cardano explained that in other crypto projects founders control the price of crypto tokens under low liquidity and it helps them to easily burn the tokens, which is not the case for Cardano.

Usually there is some large premine that the founders control and destroy to manipulate the price during periods of lower liquidity. Ada does not have this

— Charles Hoskinson (@IOHK_Charles) August 31, 2022

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