Why Cardano Founder Burned $100M Worth of ADA Meme Coin?

After a 4% drop, Cardano price is slowly crawling back, trading at $0.9559. Although the market turbulence and the decreasing investor interest cost its price trajectory,  experts see recovery soon. Meanwhile, Charles Hoskinson is gaining the spotlight, as the Cardano founder burnt $100M worth of ADA meme coin, CHARLES.

Cardano Founder Burn $100M Worth Unofficial ADA Meme Coin

The famous blockchain network’s founder, Charles Hoskinson, has taken a bold step in the crypto industry. On January 30, Honskinshon burned 900 billion ADA meme coins, which were airdropped to him by the tokens’ community. The anonymous creator of the CHARLES meme coin sent these billions of tokens to Hoskinson to capitalize on his name.

However, Hoskinson set up a burner wallet instead and sent all the 900B CHARLES, equivalent to $100M, during a live stream. The Cardano founder joked that he was sitting on 900 billion tokens before questioning people’s absurdity, which pumped the token to a fully diluted market value of $71M and a $5.14B trading volume.

 So I’m sitting on 900 billion of that. You’ve lost your damn mind.

Why Did Charles Hoskinson Burn These Tokens?

Even before US President Donald Trump launched the TRUMP and MELANIA meme coins, the hype around these cryptocurrencies was high. More importantly, people capitalized on celebrity-influenced tokens. However, Cardano founder did not wish to let that happen with the ADA meme coin.

He emphasized that hype does not equate to value. Hoskinson also advised crypto users not to follow any project mindlessly before explaining that his move was necessary to maintain Cardano’s reputation as a blockchain project.

 So, I am no longer a founder of this coin, I suppose. Congratulations. So, anyway, don’t do that again, you bastards.” said Cardano founder.

This generated a mixed reaction from the community. Some praised the Cardano founder for this bold step, while others offered the option of donations rather than burning, as this impacted the CHARLES price. The ADA meme coin event caused its price to crash 83% in 24 hours per Taptools.io.

Amid this chaos, attention moved to the Cardano token, whose price struggled with the crypto market’s turbulence.

What’s Next for Cardano Price?

ADA is among the top cryptos in the market due to its utility-based image and high demand. At present, the Cardano price is around $0.96 after a 4% decline over the week. However, the outlook is still optimistic, as the ADA price chart forms the bullish cup and handle pattern, which suggests an upcoming right rally.

An earlier CoinGape blog revealed that Cardano is eyeing $1.30 amid this bullish pattern, with the key resistance level at $1.10 and key support at $0.90. Additionally, technical factors have presented the ADA token in buyers’ zone, with the RSI showing bullish momentum. As a result, if the Cardano price breaks the $1.10 resistance, the next target will be $1.30 before hitting $1.7961. However, the price may crash further if the altcoin fails to hold the support at $0.90.

Cardano is in a re-accumulation phase and poised to breach. A bounce above the key resistance will lead it to $1.30 first, followed by a climb to $1.7961 if the omentum continues.

What’s In There For You?

The Cardano founder’s decision to burn $100M worth of CHARLES tokens hints at the rising number of cryptos lacking credibility. The creator of the ADA meme coin shared 90% of the supply with Charles Hoskinson in hopes of capitalizing on his name, so Hoskinson decided to burn these tokens. More importantly, the ADA token is getting prepared for the bullish move, as the charts show cup & handle formation. As a result, the Cardano price prediction reveals that if it crosses the key resistance, it could hit $1.30 and beyond.