- Cardano founder Charles Hoskinson has strongly refuted claims of the network being crypto’s Theranos, or a fraudulent blockchain.
- He says the network is open-source, with no skeletons in the closet.
In a recent surprise Ask Me Anything (AMA) session, Cardano (ADA) Founder Charles Hoskinson said there is no situation in which the network can be branded the Theranos of crypto. He said Cardano is an open book, unlike the now-defunct Theranos, which held skeletons in its closet.
Of note, Theranos was a privately held biotech company that thrived for over a decade owing to the promise of a groundbreaking blood-test kit. The firm claimed to have devised what is called the Edison blood-testing machines, capable of conducting blood tests using very small blood samples. Founded in 2003, the company grew to a $10 billion valuation at its peak in 2013-2014. Its founder, the 19-year old Elizabeth Holmes, was the youngest female self-made billionaire and a Silicon Valley star.
However, things turned sour starting in 2015 when medical research professors and journalists began to question the validity of the company’s technology. Further investigations revealed that the company’s claims were exaggerated and that there was no published peer-reviewed research on its technology. Theranos was also found to have multiple violations of FDA (Food and Drug Act) regulations. Subsequently, the unicorn was dissolved in 2018, and Holmes was charged with wire fraud and conspiracy. She was convicted of the same crime last month, now awaiting sentencing where she could face a maximum of 20 years imprisonment.
Cardano is not a crypto Theranos – Hoskinson
Weighing in on the high-profile case, Hoskison said many wanted the company to succeed to satisfy their desire for a “female Steve Jobs.” This is why the company was able to lie to investors and the public for so long.
In contrast, the IOHK founder says Cardano is open-source – open for testing and personalization by anyone:
Anyone in the world can fork Cardano…Anyone in the world can take our paper and implement our papers as has been done by Mina Protocol and Polkadot for some of our papers. There are no restrictions.
He adds that this is a major differentiator of real projects and scams. The latter would now allow people to “see what’s behind the curtain.”
Cardano supporters have continued to endure and counter various criticisms regarding the network. The blockchain has been called “vaporwire” and a “ghost chain” by attackers, while Hoskinson has been called the “King of Rats.”
Nonetheless, panelists from financial comparison site Finders are highly optimistic in Cardano, predicting a $2.79 ADA price by the end-2022. ADA currently trades at $0.93, having gained 10.0 percent in the past day. Kraken exchange also believes the network’s value-based approach to developments would catapult it to one of the leading L1 blockchains in the crypto industry.