“Major Cryptocurrencies Must Suffer Multiple Crashes,” Says Cardano Founder

According to Charles Hoskinson, projects that have survived both bull and bear markets over the years have been "resilient under adversarial load - and many DeFi protocols were not.

Interview

Charles Hoskinson, the founder of Cardano and one of the co-founders of Ethereum, said that one of the biggest lessons crypto users can learn from the collapse of Terra and other projects was to learn to appreciate those who have stood the test of time.

Speaking to Cointelegraph at the Web Summit technology conference in Portugal on Nov. 2, Hoskinson said he has seen many businesses in the crypto space collapse, from Silk Road to Mt. Gox. According to Hoskinson, the protocols that survived were "resilient under adversarial load", able to withstand both bear and bull markets - something many decentralized finance projects were incapable of.

"Just because you're on top today, you won't always be," Hoskinson said. “Major cryptocurrencies have to go through multiple crashes. I was in Bitcoin when it was under a dollar, and I saw it go from one dollar to $30, to $40, to $256, to $80, to $1,200, to $250, to 20 $000, to $4,000, to $64,000, now until, what is it, $20,000 today, more or less? I watched this, and I saw all the companies come and go."

Cardano founder Charles Hoskinson speaking to Mada, social media specialist at Cointelegraph November 2 Web Summit

Hoskinson said some DeFi projects have a “limited shelf life of maybe 6-12 months” and have “left for distribution insiders", as many in space learned after the collapse of Terra:

“The way things were built, [Terra] was extremely profitable for a few people, and those few people were well connected to space, and so they lifted it, and they made billions of dollars, and they mom...