Cardano founder Charles Hoskinson believes that only the “real cryptocurrencies” with integrity and utility will weather the ongoing market storm.
His sentiments come amid a bloodbath that has seen the global crypto market cap plunge by 16% to $1.8 trillion within 24 hours. Most cryptocurrencies were trading in the red at the time of writing.
Traditional Markets Blowing Up Bound To Affect Crypto
In a recent X post, Hoskinson stated that the negative developments across the traditional financial markets were affecting crypto performance. He specifically pointed out the stress facing Japan’s stock market, which has seen its worst losses since 1987.
Hoskison noted that the crypto market was bound to feel the pinch of poor policies like money printing. However, the cryptos backed by utility and integrity will recover, while fiat currencies will most likely not.
“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.
The Cardano founder further criticized crypto project founders unwarrantedly amid the ongoing market meltdown. He noted that a section of the crypto community blamed project founders for declining prices instead of examining the macroeconomic factors affecting price performance.
$1 Billion Wiped Out From Crypto Market
The cryptocurrency market is facing its worst day of trading since the start of the year. Data from CoinGecko shows that in the last 24 hours, over $300 billion has been wiped from the market amid high price volatility.
Bitcoin dropped by 13% in trade at $52,823 at the time of writing, its lowest price since February 2024. The price drop has seen over $300M in leveraged BTC longs being liquidated.
Ether has been the hardest hit among the top ten largest cryptos by market cap, with its price dropping by nearly 20% in 24 hours. Cardano (ADA) and XRP have also dropped by 15% and 14%, respectively, in 24 hours.
Besides concerns about a crash in the global stock markets, the crypto market is also fearful of Jump Crypto’s recent selloffs. The crypto trading firm has moved hundreds of millions of dollars worth of crypto to exchanges in recent days, further fuelling the bearish sentiment.
