NEW: Charles Hoskinson says "when I made recent comments about Cardano, people took words out of context to say Cardano is dead, knowing full well I said the exact opposite. I wish humanity would have better epistemic hygiene. The 1st step is to have the courage to be disliked."
UPDATE: George @CryptosR_Us defends Charles Hoskinson, says "a lot of people are hating on Charles, but he's doing what he can. When the price is down, it's very hard to make it go up, other than just stay in the space, continue to educate, communicate, and build." #Cardano $ADA
Today was the most difficult day in the history of Digital Credit.
$STRC traded as low as $82.50 before recovering sharply. $SATA traded from par down to the low 90s before also rebounding. It was a difficult day for many investors.
What happened today was a leverage liquidation event, not a deterioration in underlying credit quality.
There is an old saying in income markets that the road to hell is paved with carry.
When investors discover an asset that offers attractive yields, relatively low volatility, and strong underlying credit characteristics, many eventually decide that owning it is not enough. They borrow against it. They lever it. They attempt to enhance the carry.
That works until it doesn't.
When markets move against leveraged holders, forced selling can create a cascade. Prices fall, margin calls increase, more selling occurs, and the cycle feeds on itself. The selling becomes disconnected from fundamentals and becomes driven by balance sheet constraints.
We have seen this many times before in traditional finance. Some of the largest hedge fund failures in history involved highly leveraged positions in U.S. Treasuries. Not because Treasuries suddenly became poor credits, but because investors became overextended while trying to earn additional yield on assets that appeared safe and stable.
That is the dynamic that played out today in Digital Credit.
Importantly, the creditworthiness of the issuers remains strong.
At @Strive, our dividend reserves remain intact. Our company is not under stress. We remain well positioned to meet our obligations and continue executing our strategy. The underlying credit profile remains substantially unchanged from where it was before today's volatility.
One of the lessons markets teach repeatedly is that leverage flushes are not necessarily evidence of weak collateral. In many cases, they occur precisely because the underlying collateral is viewed as stable enough to encourage excessive leverage in the first place.
In that sense, today's events were difficult for some investors, but they were also instructive.
Digital Credit is still in its infancy. It is better for the market to experience and learn from these dynamics now, while the market remains relatively small, than years from now when the market is many times larger. Investors, issuers, and market participants all benefit from understanding the risks associated with leverage and liquidity before the asset class reaches full scale.
No one knows with certainty whether today's lows will ultimately prove to be the bottom.
What is clear is that there was substantial demand at those prices. Both $STRC and $SATA experienced significant buying interest off their intraday lows, resulting in sharp recoveries. That price action reflects meaningful demand entering the market at lower levels and is an encouraging sign for the health of the asset class.
A liquidation event and a credit event are not the same thing.
The price action today did not change my conviction in the long-term opportunity for Digital Credit. If anything, it reinforced my belief that we are building an entirely new category of financial instrument that will experience many of the same growing pains that other large fixed income markets experienced before reaching maturity.
The volatility was uncomfortable for many participants.
The lesson will prove valuable.
Stay calm. Focus on fundamentals. Markets have a way of working through excesses, and when they do, stronger foundations are often left behind.
@moodybtc Fans are fans. Is the concept a novelty to you? As for Charles not helping the cause, that’s your opinion. The fact is that the public at large and many investors would not even know Cardano without him.
UPDATE: #Cardano $ADA Founder Charles Hoskinson on solving the blockchain trilemma and trust in the global economy, says "Cardano is the only one who has all these properties, so there's an inevitability, if people keep pushing, that we will win, and we will surpass Bitcoin."
I've been in crypto long enough to know when a moment is real. This is one of them.
10 years of Swell converging with real scale, institutional adoption, and Swell + Apex together for the first time this fall. We've been building toward this moment — see you in New York! @RippleSwell
https://t.co/Kzzcpb9NIB
UPDATE: George @CryptosR_Us says "I would actually like to take over TapTools, I reached out, and I think I can revitalize it in a big way. If anyone is watching from TapTools, hopefully they will reach out." #Cardano $ADA
Anthony Scaramucci on Bitcoin & crypto:
"I still like it. I own a lot of it."
"I think Bitcoin starts to rally late in the 4th quarter of 2026 into early 2027."
"Is Michael (Saylor) in trouble? He's definitely not in trouble...I like it. I like him. I think he's going to be right."
"We're at the point in the cycle where the RSI is at an all time low for Bitcoin. The apathy is there. No one cares about (crypto) anymore. If you look at Google searches they're way way down."
This is "my 38th year as an investor: When you have RSI where it is, apathy where it is, and it's a thin thin market...a tiny bit of demand for Bitcoin moves the price."
BREAKING:
The EU banned cash payments over €10,000.
And will require ID for every Bitcoin transaction starting 2027.
Cash banned above €10,000.
Bitcoin requires ID.
Gold can still be bought anonymously.
While America proposes zero capital gains on Bitcoin.
While UAE builds crypto banks with zero restrictions.
Europe is building a financial surveillance state.
And calling it consumer protection.
2027 is closer than it sounds.
Kevin Warsh stood up there and told everyone disinflation is coming.
“Big erasers” on their hawkish dots, & openly saying they aren’t bound by them even six days out, is another way of saying he expects the inflation data to keep falling out from under those dots.
JUST IN: Senator Bill Hagerty said he hopes the Clarity Act will be signed into law "before the end of July."
"We need to get this done. It's important to get it done. It's critical to maintain America's innovation edge."
The Fed is About to BLOW UP Bitcoin!
Crypto Holders Are WRONG!
Timestamps:
0:00 - FOMC SURPRISE!!
1:31 - Oil = Canary
2:38 - Do Not Be Fooled!
3:55 - Michael Saylor FUD
4:27 - Q4 rally?? Scaramucci’s Outlook
7:40 - Clarity Act “before end of July”
8:54 - Fear in the air
9:39 - explaining the crypto bull case
WATCH 👇👇👇
Everyone watched the Fed today and saw "no cuts" or a dot plot that looked "hawkish"
They're missing what actually happened.
Kevin Warsh just quietly announced he doesn't care about dot plots & he'll rebuild entire FED for an AI economy, while measuring inflation differently.
UPDATE: #Cardano $ADA's Ouroboros Leios advances closer to mainnet, now surpassing 5,700 total updates and over 705,000 lines of code. Charles Hoskinson says "we've done things that we could only have dreamed of when I started the project. Leios' testnet is starting June 23rd."
The purpose of most coins is to enrich the team and VCs
solana:dog1viwbb2vWDpER5FrJ4YFG6gq6XuyFohUe9TXN65u has no team or VC
solana:dog1viwbb2vWDpER5FrJ4YFG6gq6XuyFohUe9TXN65u is for the people!!!!!