Charles Hoskinson identified speculative schemes underlying the crypto market

Cardano founder Charles Hoskinson shared his analysis of the recent months’ cryptocurrency market crisis, naming the true architects of the large-scale decline. In his opinion, the fall of Bitcoin from its peak of $126,000 to $80,600 and the collapse of the ADA token from $0.6092 to $0.3911 were not organic market movements but deliberate manipulations by major financial players.

Pump-and-Dump Scheme as a Manipulation Tool

Charles Hoskinson pointed to aggressive tactics by companies like Citadel, which use the classic “pump and dump” scheme—inflating the value and then mass selling off. The mechanism is simple: large players, holding significant crypto assets, artificially speculate on price increases to attract retail investors.

Once prices reach a peak due to speculative demand, these same companies open short positions and begin mass dumping assets. The predictable result: prices crash, retail investors suffer billions in losses, and the manipulators reap enormous profits from the decline.

Market makers are in a difficult position, trying to maintain liquidity in a falling market. The crypto market still feels the shock from these large-scale speculations.

Cyclical Repetition of Mistakes: From NFT Bubble to Ecosystem Collapse

Charles Hoskinson recalled the bullish period of 2021 as an example of “irrational optimism,” when non-fungible tokens (NFTs) quickly generated seven-figure returns for investors. However, the story was not without harsh lessons: the collapse of the FTX exchange and the downfall of the Terra ecosystem with its LUNA token seriously damaged the reputation of the entire segment.

According to Cardano’s leader, the problem is that retail investors have not learned basic risk management lessons. The dominance of a few greedy corporations combined with irresponsible leverage use made the entire digital asset segment vulnerable to manipulation.

Path to Stabilization: The Role of Regulation

Charles Hoskinson believes that the key to increasing trust and stability lies in proper separation of powers among US regulators. Clear delineation of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) is necessary.

Such regulatory structuring will help avoid conflicts of interest, better protect retail investors, and create a more transparent regulatory landscape. Hoskinson hopes these measures will be adopted in the US in the coming years.

Optimistic Forecasts Amid Current Challenges

Despite current difficulties, Charles Hoskinson remains optimistic. He predicts that by the end of 2026, Bitcoin could significantly rise to $250,000. However, such growth is only possible if systemic vulnerabilities are addressed and speculation is more tightly controlled.

Recently, the Cardano blockchain faced a technical issue: for the first time in eight years, the network split into two chains. The founder called this the result of a deliberate attack initiated by a developer with personal hostility toward him. Despite these challenges, Hoskinson continues to believe in the potential of blockchain technology, provided it is applied more maturely and the market becomes more responsible.