Cardano (ADA) inventor Charles Hoskinson made statements about the investments of venture capitalists. Hoskinson says venture capitalists prefer to allocate capital to FTX and Terra rather than Cardano. Here are the details…
Response of venture capitalists to Cardano network
It is known that Cardano does not receive much venture capital (VC) support like other Blockchain projects. Cardano’s lack of VC support has sparked controversy on various social media platforms. In a recent tweet, Paula Manuel, COO of Cardano-based Pavia Metaverse explained that VCs have consistently refused to invest in Pavia because it is built on the “Cardano Blockchain”. Manuel used the following statements:
I’ve had several conversations with venture capitalists over the past few months. When we mentioned we were building on Cardano, they were startled and said, ‘Eww, no thanks’. We may be in the risk business, we are not risky.
Patrick Tobler, founder of Cardano-based Web3 infrastructure NMKR, confirmed Manuel’s claim. According to Tobler, he received an email from a VC explaining that he will not be investing in any Cardano-related projects.
What were Hoskinson’s reactions?
Responding to these comments, Cardano founder Charles Hoskinson stated that these venture capitalists would prefer to invest in collapsed cryptocurrency projects such as Terra (LUNA) and the FTX exchange. Despite Cardano’s tremendous growth and stability, the project has failed to attract VC investments. Hoskinson has commented on the development multiple times. In January, Hoskinson stated that Cardano does not need VC support. He then referred to the Cardano treasure. He pointed out that the treasury is building one of the largest venture capitalists.
Cardano Treasury holds a total of 1.06 billion ADA coins, worth approximately $332 million at the current exchange rate. After the collapse of the Terra ecosystem in May, Hoskinson took to Twitter to ask why venture capitalists hate Cardano and love other altcoins. Galaxy Digital Investments CEO Mike Novogratz shared a photo of his left arm tattooed with the Luna logo. Hoskinson used the following statements:
I’ve always wondered why VCs and crypto media hate Cardano and only love certain altcoins. I can not understand.
The network is fine though without VC support
While ADA hasn’t had that much VC support over the years, Hoskinson expressed optimism that VCs will flock to the network by 2024, when decentralized applications start valuing billions of dollars. Hoskinson used the following statements:
So, they come into play when you see multiple Cardano dApps start valuing billions of dollars. Because they have something to invest in, they have something to connect with. So we can probably see something like this in 2023, 2024.
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