Internal tensions on Cardano: An ADA whale declared war on Input Output

Cardano faces criticism from an ADA whale, as the community and Charles Hoskinson respond strongly. 

Cardano is going through one of its most tense moments since the implementation of its decentralized governance model. A Delegated Representative (DRep) known as “Cardano Whale”, with over 6 million ADA in proxy voting power, has publicly declared its rejection of all future proposals from Input Output Global (IOG), the company led by Charles Hoskinson that develops the network's infrastructure.

The whale accuses IOG of “wasting millions on broken promises” and to request “obscene amounts of money” without delivering tangible results. 

This positioning has generated intense debate, considering that the ADA whale voted in favor of funding the Cardano Foundation for the 2025 Summit. However, its stance towards IOG has been systematic rejection.

Hoskinson denies rumors and defends Cardano development

Charles Hoskinson, responding to criticism from the Cardano Whale, defended the network's development, noting that it is ongoing and that IOG's spending has been "modest" compared to other networks. 

On the other hand, although rumors spread that Hoskinson was consulting with a law firm specializing in defamation, hinting at possible legal action against the ADA whale, the Cardano founder denied these claims, classifying them as “fake news”In X, Hoskinson clarified that he has never threatened legal action against the whales.

Hoskinson's approach has been to defuse the adversarial narrative, appealing to transparency and respect for the diversity of opinions within the governance system.

The community also takes a stand against criticism

On the other hand, the community's reaction has been mixed, but with a mostly critical tone towards the ADA whale. Comments such as “Emotions are never a good guiding star” y “The rejection seems to have personal roots rather than rational criticism.” reflect a perception that Cardano Whale decisions could be influenced by subjective factors.

Other users, however, recognize the whale's historical role as a defender of the project during bearish cycles and call for maintaining mutual respect. Likewise, the ability to redirect ADA delegation to DReps more aligned with different positions has been highlighted as a strength of Cardano's decentralized governance model. 

ADA in the market: technical signals and institutional context

Despite internal tensions, the ADA token has shown resilience in the market. Although it experienced a 6% drop in the last week, it has surprised with a solid performance. monthly increase of 36%, reflecting that, despite the difficulties, it has managed to gain investor confidence. Technical analysis suggests that if it manages to stay above $0,87, it is well on its way to advancing to around $1,18 in the short term.

This performance makes it clear that the project's fundamentals remain attractive to those investing in ADA, although the governance situation could add a degree of uncertainty that could influence future sentiment. The institutional context and decisions within the ecosystem play an important role in how this token is perceived and valued in the medium and long term.

Grayscale applies for Cardano ETF

In parallel to the internal debate, Grayscale has filed an application with the SEC to launch the first Cardano-based cash ETF. If approved, this product would allow institutional investors to gain regulated exposure to ADA without needing to directly own the cryptocurrency.

The proposed ETF will directly track the price of ADA and use cold storage to safeguard the assets. If it receives regulatory approval, this new investment fund could increase Cardano's visibility and credibility in traditional markets, marking a milestone in its institutional adoption.

So, while the market is offering positive signals and the possibility of an institutional ETF looms on the horizon, ADA is showing not only resilience but also potential for growth, supported by a solid technical foundation and institutional backing that, while not without its challenges, maintains investor interest.