Cardano Ecosystem Shaken by Dispute Between Hoskinson and Optim Finance

Tensions have flared within the Cardano ecosystem following a clash between its founder, Charles Hoskinson, and the DeFi platform Optim Finance. The conflict arose after allegations that Optim Finance was involved in a campaign to undermine Cardano and damage Hoskinson’s reputation.

Allegations Trigger Deep Divide

The situation began when NFT artist Masator Alexander circulated claims that Charles Hoskinson had inserted hidden code during Cardano’s 2021 Allegra upgrade, enabling the diversion of over 300 million ADA from funds left unclaimed during Cardano’s initial coin offering, a move that has raised questions about the integrity of the network.

Hoskinson immediately refuted these allegations, saying it was a lie and there was no solid evidence to support them. He explained that no formal complaint had been made, no authority had launched an inquiry, and no one had actually reported any loss. He went on to initiate an internal audit to reinforce his position and later pointed to the source of the claims, identifying a group connected to a dRep backed by Optim Finance.

The Cardano founder stated that this group had been part of a wider effort to mislead the public, pushing an unproven narrative across various online platforms and media outlets. He said the consequences of this campaign included reputational harm not just to him but to Cardano as a whole.

Harsh Words and Community Pushback

Hoskinson’s response to the matter was direct. He accused Optim Finance of delegating substantial ADA holdings to a group involved in spreading damaging claims. After being exposed, he said, they shifted blame rather than taking responsibility for their actions.

However, not everyone within the Cardano community supported his reaction. A Cardano user, olezigaba, questioned whether Hoskinson’s actions aligned with the principles of decentralization. They raised concerns about how it might appear to developers and investors when Cardano’s founder publicly went after a project that hadn’t directly criticized him.

In return, Hoskinson made it clear he saw this issue as far beyond personal criticism. He believed the actions of those involved were calculated and harmful. He likened the delegation of user funds to a group pushing misinformation as being deeply irresponsible and damaging to the network’s future. He expressed doubts about the capability of such actors to manage significant financial infrastructure within the Cardano ecosystem.

He also emphasized that the entire story had been built on a misinterpretation of technical data by someone who lacked understanding. He argued that such confusion was then used to create a false narrative, one that went viral without being grounded in fact.

Optim Finance Responds as Conflict Hits Cardano and O Tokens

As a result of the escalating conflict, Hoskinson announced he would no longer associate with Optim Finance. He stated his intention to redirect his support to other DeFi platforms on Cardano, naming Indigo as one of the projects he planned to back more actively. He noted that this shift would help them become more competitive and continue to grow.

Optim Finance, for its part, acknowledged that a misstep had occurred. The platform stated that it had erred in choosing a politically charged dRep without allowing the DAO to decide on the delegation. The team said it would move forward, stay focused on building, and continue delivering products that exceed expectations.

The dispute has already had market consequences. Optim Finance’s native token, O, recorded a sharp drop of over 27% within a day, following the widespread backlash. Many Cardano supporters began offloading the token after the accusations emerged. ADA also slipped slightly by close to 2% at the time of writing. Despite the dip in value, ADA’s trading activity showed a modest increase, rising just over 3% as Cardano surpassed one billion in traded volume.