Breaking news today comes straight from Charles Hoskinson, the CEO of IOHK normally, breaking news from specific cryptocurrencies will have an impact on value, however in this instance, this is not the case as the announcement refers to the structure of the team behind Cardano and ADA. So no, don’t get too excited, this isn’t the sort of news that will bring you a huge, instant return on your investment. Instead, this is the sort of news that will allow you to plan ahead for the future of your Cadano investments and of course, any potential investments that could be made by new investors in the future.
In a video named ‘The Babylonian Captivity of Cardano has Ended’, Hoskinson announces the resignation of Michael Parsons, a blockchain advisor and the ex chairman of the Cardano Foundation. As a result of this announcement, IOHK, an overarching branch also owned and managed by Hoskinson will now be fully responsible for the Cardano Foundation and the ADA project, alongside Ken Kodama, the CEO of Emurgo, the second company now top of the ADA throne.
According to Crypto Globe, Cardano will now be managed in a joint partnership between IOHK and Emurgo until 2020, when we expect a reshuffle to occur, though ownership of course will still remain in the hands of Hoskinson.
What’s happened here?
As stated, Hoskinson took to YouTube to make this announcement in order to inform the community that Parsons had stepped down. It’s no secret that this is something Hoskinson has been hoping will happen. As a matter of fact, not too long ago when Hoskinson demanded a full audit of the Cardano Foundation, Hoskinson and Kodama called for the resignation of Parsons, in a letter titled: ‘An open letter to the Cardano community from IOHK and Emurgo’.
Here’s what Hoskinson has had to say:
"Right around 3pm London time, in the UK, Michael Parsons met with Pascal Schmid, and his lawyers, and signed a resignation... And Pascal has filed that, and the Foundation, shortly thereafter, made the announcement that Michael Parsons will be stepping down from the Cardano Foundation effective immediately."
The Cardano Foundation have had three clear points to make regarding this matter:
"Michael Parsons, Chairman of the Foundation Council of the Cardano Foundation, has resigned with immediate effect. Pascal Schmid, Council Member, will take over as Chairman of the Foundation Council on an interim basis and the Foundation is working to supplement the Foundation Council with suitable persons as soon as possible."
Why is this important?
Firstly, it’s important that the Cardano community are aware of this as ultimately, they need to know who is in charge of the product they are putting their money into. Of course, this move by Hoskinson may pose some questions about the decentralisation of Cardano ADA, though this is a debate for another day as at the moment, it’s a very theoretical one.
Within his announcement, Hoskinson makes it pretty clear why he believes this announcement is an important one, giving three clear justifications, in which he says:
“The Foundation needs to restore its credibility and trust with you, the community. The Foundation needs to be a good citizen within the Swiss jurisdiction. It is a Swiss Foundation, and my belief is that it does need to make some investments in that jurisdiction, and build up its presence in that jurisdiction so it can continue to operate without disruption, and continue to operate as a viable effective entity within that ecosystem. The Foundation can take this recent crisis as an opportunity to reinvent itself and become a bastion of good governance... Emurgo, IOHK, and the remaining members of the Cardano Foundation will hopefully going to be able to work together, after the next one or two months of cleanup occur, to try to figure out a permanent form of governance for the Foundation."
What do we make of this?
It all seems very dramatic and to many, this could seem like a pointless piece of news. We won’t go into detail about Parsons as we need to remain impartial, but it is clear that there has been some disagreements within the upper levels of Cardano which has led to this assault by Hoskinson and Kodama. Of course, as the creator of the project, Hoskinson should have some say on what happens on a management level at Cardano, but again, this does interfere with the notion of decentralisation.
Either way, it is great that Hoskinson has remained transparent and has been quick to inform the community about this change and about what will happen next with the project. Indeed, the future for Cardano ADA does look very bright, with Hoskinson behind the wheel, what’s the worst that could happen? Hoskinson has a responsibility to see this through with Kodama, at the very least as far as 2020. After this period, what should we expect to happen? Who knows, we can be certain that Hoskinson is in this for the long run and that hopefully, 2020 won’t bring with it any massive changes.
Cardano and ADA looks great, it’s an exciting time to be involved but please remember that if this is something you wish to invest in, do your research first, and always trade safe.