News - "Cardano (ADA) is not a security"

By Mike Hesp

"Cardano (ADA) is not a security"

Cardano (ADA)
Blockchain-Technology
Laws and regulations

Academic, thorough and successful: Cardano has been relevant since 2017 - but coming under pressure from the SEC. Why ADA isn't security and why Charles Hoskinson doesn't have full control of the network.

In the past 30 days Cardano (ADA) increased by about 30 percent, consolidating its place among the top 10 cryptocurrencies by market capitalization. This makes Charles Hoskinson's academic network unique - at least compared to many cryptocurrencies created during the heyday of the ICO. Cardano cultivates a quiet but thorough work ethic, which should be reflected in its long-term success.

But while the blockchain has been running for more than eight years, there have been problems from the American SEC. In several charges against crypto exchanges, the authority raises ADA as a security. Sheraz Ahmed, speaker for adoption at the Cardano Summit 2023, sees it differently. In an interview with the German BTC-ECHO he reveals why ADA is not security, why Charles Hoskinson does not have full control of the network and why the blockchain is not an "Ethereum killer."

Why is the SEC tackling Cardano as a security in lawsuits?

It appears that the SEC is targeting a wide range of cryptocurrencies without making precise distinctions. Cardano can be considered part of this broad approach. Technologically, Cardano has a unique approach to strike that differs from other protocols. Once the SEC understands more and professionalizes its strategy, it should realize that Cardano (ADA) is not a security.

Now in development since 2017, Cardano is still holding its own in the top 10, while other ICO-era projects are sinking: What is the formula for success?

The first point is the long-term vision. From the beginning, Cardano had a clear idea of what they wanted to build. They defined different phases they wanted to go through and remained consistent despite possible schedule changes.

The second point concerns the foundation and structure. Unlike many protocols created by a single founder or company, Cardano consists of different organisations. Each of these organizations has its own tasks, which contributes to versatile and stable development. This balance between different entities constantly brings new ideas and energy.

Isn't Charles Hoskinson a central figure with a lot of control?

No. Interestingly, he has stepped back to develop peripheral infrastructure and support the ecosystem. As a result, Cardano stands as an island in the crypto landscape. Because Hoskinson gave up direct control, the network remains so flexible.

Cardano is positioning itself as an "Ethereum killer." What does collaboration with other blockchain platforms look like?

Cardano is not looking to replace Ethereum. Rather, it seems to take a complementary position and collaborate with other blockchain ecosystems. Charles Hoskinson also emphasized the need to build bridges to other ecosystems such as Bitcoin and Ethereum rather than positioning itself as an "Ethereum killer."

In the future, different blockchains could exist for different applications and user preferences, similar to how different Web browsers are used for different needs.

Bitcoin wants to establish itself as a payment network: What is Cardano's goal?

Cardano wants to build a respectable blockchain and develop real-world use cases, such as Self Sovereign Identities (SSI). Projects with the United Nations and various governments also indicate that Cardano is trying to get involved in larger macroeconomic issues.

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