- Charles Hoskinson has responded to criticism by billionaire Mike Novogratz that Cardano is not worth its valuation and has created ‘something like a cult.’
- The Cardano creator believes that Novogratz is only bad-mouthing Cardano because, unlike the other ‘VC coins,’ he can’t manipulate ADA and get in at the price he wants.
Mike Novogratz was at the Bitcoin 2021 conference in Miami and on the sidelines of the event, he shared his thoughts on the market. One of the standout comments was that Cardano was overvalued and that the project had created somewhat of a ‘cult following.’ Now, Charles Hoskinson has responded, claiming Novogratz is just upset that he can’t pull the strings with ADA as he does with the other ‘VC coins.’
In his interview with Yahoo Finance, the billionaire investor claimed, ” And so things like Cardano, it shocks me, the valuation. And it shocks every smart developer I know. They have done something to create this weird cult. And those things don’t die easy.”
Novogratz believes that crypto has become more about branding than it has about the underlying technology, and he believes this is misleading the larger community. When it comes, to branding, he sees IOHK as one of the companies that have done this well, sometimes at the expense of having a great product.
Didn’t make our full interview, but Mike Novogratz is also on the list of smart people who remain shocked by Cardano’s valuation:
“They have done something to create this weird cult.”#Cardano $ADA pic.twitter.com/ZHAhL0sgLi
— Zack Guzmán (@zGuz) June 12, 2021
His comments were not well received in the Cardano community, with many calling him out for scapegoating Cardano as well as misconstruing fact-based belief with obsessed cultish following.
Hoskinson responds, calls out Novogratz for hypocrisy
Hoskinson, the Cardano founder has called out the Wall Street veteran, claiming that the outburst was just motivated by his need to control Cardano.
Hoskinson stated:
He’s saying that he doesn’t see a backdoor to get in at a favorable price or manipulate the market like the rest of the VC coins. Somehow fair, transparent, community-led cryptocurrencies are “cults”.
Let me translate the billionaire speak for you guys. He's saying that he doesn't see a backdoor to get in at a favorable price or manipulate the market like the rest of the VC coins. Somehow fair, transparent, community led cryptocurrencies are "cults" I'll remember that Mike https://t.co/NksbE1JWsf
— Charles Hoskinson (@IOHK_Charles) June 13, 2021
This isn’t the first time that Novogratz and Hoskinson have interacted regarding Cardano. In March, Novogratz stated on Twitter, “…can anyone make a real bull case for ADA? Does anyone build on it? Use it? Why is market cap so high? Should it be a funding asset? It’s one of the few cryptos I haven’t traded in my life.”
Hoskinson was prompt to respond, inviting him for a call to talk about the project. Novogratz accepted the invitation and claimed it would go down in a week. This was all there was at the time, at least on social media. However, given the most recent exchange, it’s fair to assume that the call never happened.
Really appreciate the engagement on this question.Maybe the most I’ve ever gotten on a question. I am bearish but will do a call with @IOHK_Charles next week. Maybe he can convince me that I’m wrong. Just seems to much market cap for the amount of engagement.I keep it simple. https://t.co/xahpAoRyua
— Mike Novogratz (@novogratz) March 12, 2021
Novogratz is also not the first billionaire to question Cardano’s use cases and valuation. Eccentric Dallas Mavericks owner and Shark Tank personality Mark Cuban has also been quizzical of the project. As CNF reported, the billionaire posed questions on social media regarding where Cardano users apply the crypto. As always, Hoskinson offered to explain in detail, this time offering to meet him on his farm in Colorado.
Really appreciate the engagement on this question.Maybe the most I’ve ever gotten on a question. I am bearish but will do a call with @IOHK_Charles next week. Maybe he can convince me that I’m wrong. Just seems to much market cap for the amount of engagement.I keep it simple. https://t.co/xahpAoRyua
— Mike Novogratz (@novogratz) March 12, 2021
Related: Charles Hoskinson pitches to Mark Cuban, but the billionaire thinks Cardano is not ready
Hoskinson mentioned some of what makes Cardano a standout crypto, stating:
…we have five million students in Ethiopia, thousands of assets issued on Cardano, a nice DApp ecosystem brewing for smart contract launch, a new VC model with catalyst, huge community.
