- Cardano founder Charles Hoskinson reveals that the collapse of Terra (LUNA) has affected the development of the sixth-largest crypto asset by market cap.
- The consequences have been catastrophic and continue to reverberate in the crypto space.
- If you move too fast, like we’ve seen with Luna, and we’ve seen with $10.5 billion in hacks last year, you could actually make it work until it stops working, and then when it doesn’t work, it’s a catastrophic failure and everyone loses their money.
- We always say that it is not the first, it is the best from the beginning. The people who are going to survive are those who test themselves under stress and show resilience.
Cardano founder Charles Hoskinson reveals that the collapse of Terra (LUNA) has affected the development of the sixth-largest crypto asset by market cap.
Hoskinson says that the ripple effect of the decoupling of the algorithmic stablecoin TerraUSD (UST) has forced Cardano developers to be more cautious in plans for a Vasil upgrade.
“Our engineers are deep in the weeds right now and are working very hard on Vasil. A lot of stuff to do, a lot of testing to do. After the crash of LUNA, we decided to add additional test support to what we’re doing and think about a few things very carefully. It’s taking a bit longer, but we think an abundance of caution is well rewarded these days.”
The consequences have been catastrophic and continue to reverberate in the crypto space. In a recent interview with CoinDesk, Hoskinson stated that the event highlighted the importance of taking time to develop a project before releasing it to users.
Otherwise, as the fall of LUNA/UST seems to demonstrate, there is a greater risk of a product becoming unsustainable.
Hoskinson had this to say about these events and the billions of dollars lost to hacks and other cyberattacks that have affected cryptocurrency users since 2021:
“If you move too fast, like we’ve seen with Luna, and we’ve seen with $10.5 billion in hacks last year, you could actually make it work until it stops working, and then when it doesn’t work, it’s a catastrophic failure and everyone loses their money.”
Charles Hoskinson
Cardano could be the opposite in this case. The network has been in constant development since its launch. Critics complain that this process could take too long.
Unlike other projects, it took years for Cardano to be able to operate under a decentralized proof-of-stake (PoS) consensus protocol. Additionally, several Hard Fork Combinator (HFC) events were needed before the network implemented smart contract capabilities.
This is in addition to critics who claim that the network has been moving too slowly in the crypto space. In response to these users, Hoskinson said that IOG is “playing the longbow game”. Therefore, you prefer to think of development in terms of years rather than months or weeks.
The IOG CEO added:
We always say that it is not the first, it is the best from the beginning. The people who are going to survive are those who test themselves under stress and show resilience.
Charles Hoskinson
Better safe than sorry Hoskinson bets on the long term
In that sense, Hoskinson said that Cardano’s development is proceeding at a “slower” pace. However, he prefers this approach which is in contrast to the rest of the crypto industry, in his opinion.
The IOG CEO believes the space is incentivized to prioritize “speed over quality. ” Thus, Hoskinson predicted that projects with a long-term vision and development will prevail over those focused on the short term.
