Charles Hoskinson: Cardano will take over “unsustainable” Ethereum market

  • The Cardano founder came out to heavily criticize Ethereum, a project he co-founded, claiming that it’s been taken over by selfish interests out to capitalize on unsustainable models.
  • He called out the “useless DeFi and overvalued NFTs” as some of the waves that Ethereum developers are exploiting, comparing it to Myspace and Netscape which died out.

The Ethereum market model is fundamentally flawed and is unsustainable in the long term. This is according to Charles Hoskinson, the founder of Cardano, an Ethereum rival. In a recent Periscope livestream, he criticized the DeFi sector, terming most projects as useless; DApps, which he believes are controlled by just a few people; NFTs, most of which are overpriced and Ethereum’s very high fees and slow transactions.

Hoskinson came out to defend Cardano against claims that it’s a ghost chain. This criticism stems from its ever-rising valuation despite having “no discernible apps running on it.” According to Hoskinson, this criticism is deliberately misleading.

The mathematician pointed out that Cardano is still in its very early stages, but despite this, enterprise companies are rushing to build on its network. He singled out New Balance, a global apparel giant which has built a shoe authentication service on Cardano.

Hoskinson is the founder of Input Output Hong Kong (IOHK), the company behind Cardano. Before he founded IOHK, he worked for close to two years alongside Vitalik Buterin as one of the core developers who built Ethereum. However, he fell out with Buterin over financing and governance issues.

Hoskinson believes that Cardano embodies the heart of cryptocurrencies and that if it fails, the whole industry goes down as well.

If Cardano fails, cryptocurrencies ought to fail because we’re doing everything the right way. And we’re doing in a way that maximizes the egalitarian nature of the system.

Ethereum will die out just like Netscape and Myspace did

Hoskinson pulled no punches in his criticism of Ethereum. For one, despite claiming otherwise, most decentralized applications (DApps) on Ethereum are “in the hands of a very small group of actors.” Additionally, only a small percentage of DApps have users – the rest are ghost apps with no utility.

In 2020, only 31% of new DApps were built on Ethereum. “That trend will continue this year, if not for anything else, then for cost,” he predicted.

If the goal is rampant speculation, Ponzi schemes, no real use and utility and no ability to scale to billions of people, I want nothing to do with that.

The current Ethereum market is based on shilling dubious projects and making as much money as possible. This model “makes no sense, it’s immoral, unethical, and it should be illegal,” he claimed. This model is the reason an NFT like Homer Pepe sells for $300,000 and other NFTs are selling for up to $6 million.

Hoskinson went on to blast Ethereum as a project that risks dying off just as many other heavyweights in the past have. These mega projects that fizzled out failed to evolve and serve their users’ needs.

You don’t believe me? Do something for me; take out your Blackberry phone, go to Yahoo on your Netscape browser and search for your Myspace profile. Tell me how that’s working for you. This is how quickly things can change.

This is the latest instance of Hoskinson hitting back against claims that Cardano is a ghost chain. Recently, he took to Twitter to reveal a Cardano ecosystem showing some of the big companies building on the network. They include governments like Georgia and Ethiopia; partners like PwC and Vacuum Labs; multinationals like New Balance and DeFi markets like Algoz and Bondly.

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