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Charles Hoskinson Argues Stellar Burn Was Pointless

Charles Hoskinson Argues Stellar Burn Was Pointless
  • The Stellar Development Foundation (SDF) announced earlier in November, that it was cutting down the available Stellar Lumens (XLM) in half.
  • The Ethereum co-founder and founder of Cardano Charles Hoskinson, has given his two cents on the matter...

The Stellar Development Foundation (SDF) announced earlier in November, that it was cutting down the available Stellar Lumens (XLM) in half, by burning at least 55 million tokens

As previously reported by CryptoDaily, there were several different kinds of reactions flooding in, as was expected, in regards to the decision to do to the burning and its possible impact on the XLM community

The Ethereum co-founder and founder of Cardano Charles Hoskinson, has given his two cents on the matter, calling it unnecessary.

In a recent Ask-Me-Anything (AMA) session (similar to a Q&A) the founder spoke on several concerns, including the now passed fad of initial coin offerings (ICOs) as well as the Stellar network burn of XLM. Hoskinson even compared it with Cardano’s ADA. 

Hoskinson argued the points burns are a useless act and no ADA can just be burned by the Cardano network:

“Burns never work. They are market manipulation on the short term for speculators, at the expense of the future of the protocol; and in our case, it would require us to steal ADA from people because there’s no giant pile of ADA that’s unallocated.”

In regards to Stellar specifically, the businessmen said that the burn was useless and there was no value in it. He suggested that the burnt assets could have found much better use but instead, it was very short-lived in market price appreciation, that has since been lost.

“It’s basically saying, I can’t figure out what to do with this big pile of money, so I’m just gonna set it on fire to make money more scarce, to give a small gift to everybody. It’s insanity!”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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