Cardano (ADA) Price: Rallies Stalls as Charles Hoskinson Reports $2.5 Billion Loss

TLDR

• Charles Hoskinson lost over $2.5 billion in four years as Cardano and the crypto market failed to deliver expected returns following Trump’s election
• Most cryptocurrencies have dropped 40-50% since Trump took office, with retail investors down 70-80% from entry points
• The Official Trump memecoin launch turned crypto from a bipartisan issue into a partisan weapon Democrats will use in campaigns
• Hoskinson is stepping back from X (formerly Twitter) to decentralize influence around Cardano, though he’ll continue engagement through other channels
• The crypto market bifurcated in 2025 with institutions buying Bitcoin through ETFs while altcoins like Cardano remained stagnant

Charles Hoskinson revealed he lost more than $2.5 billion over the past four years as Cardano struggled in a turbulent crypto market. The founder spoke on The Wolf Of All Streets Podcast about how the industry’s expectations for growth fell apart.

The crypto community expected Trump’s election to boost prices. Instead, most cryptocurrencies fell 40-50% since Trump took office. Hoskinson said the industry is unhealthy under current leadership.

The crypto sector survived the FTX collapse and Luna implosion. It also weathered former SEC Chair Gary Gensler’s enforcement campaign. But new problems emerged when government involvement increased.

Hoskinson called the Official Trump memecoin launch catastrophic for the industry. The launch transformed crypto from a bipartisan issue with 70 Senate votes into a partisan weapon. Democrats now have ammunition for midterm campaigns.

Before the memecoin launch, Democrats had constituents who owned crypto and industry donors. Now they’ll campaign on the message that crypto equals Trump corruption. This makes passing legislation nearly impossible even with Republican control of Congress.

Retail Investors Abandoned The Market

Many retail holders are down 70-80% from their entry points. They can’t justify another round of speculation to their families. Hoskinson said retail investors don’t want to come back because they keep losing money on promises of 10x returns.

The recovery split in two directions during 2025. Institutions bought Bitcoin through ETFs and structured products, driving BTC prices higher. None of that capital moved into the altcoin space, which stayed flat throughout the year.

The Genius Act that passed was essentially fan service for banks. It allowed them to become stablecoin issuers but didn’t help DeFi or layer-one protocols. The legislation didn’t address innovation in the space.

Hoskinson pointed out the irony of the situation. Everyone bought Bitcoin to avoid Wall Street control. Now institutions hold all the Bitcoin on behalf of other people.

Hoskinson Steps Back From Social Media

Charles Hoskinson recently moved away from X, formerly Twitter, to decentralize influence around Cardano projects. Tim Warren, host of the Investing Broz YouTube channel, argues Hoskinson’s visibility has been instrumental in Cardano’s growth.

Warren believes many investors committed to Cardano primarily because of Hoskinson’s persona and direct community engagement. He points to the 2021 bull market when ADA reached an all-time high of approximately $3.10.

Hoskinson clarified he will remain engaged through other channels. A digital twin will manage his X account for continued communication. He will host weekly AMAs on the Midnight Discord and regular YouTube livestreams.

The debate centers on whether Cardano can thrive on technological merits alone or if Hoskinson’s personal brand remains critical to success. The crypto market is often driven by sentiment, hype, and community engagement.

Hoskinson’s departure from X could be an attempt to foster a more decentralized ecosystem. By reducing his personal influence, he may encourage greater participation from the community. The transition from centralized leadership to decentralized governance requires careful planning and execution.

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