Inventor of Cardano and Input-Output Global (IOG) CEO, Charles Hoskinson, gave his opinion on the recent events related to the crash in the Terra Classic network, formally known as Terra. A collapse in the price of its native token LUNA caused the algorithmic stablecoin UST to deppeged from the U.S. dollar.
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The consequences have been catastrophic and continue to ripple across the crypto space. In a recent interview with CoinDesk, Hoskinson claimed the event highlighted the importance of taking time to develop a project before releasing it to users.
Otherwise, as the LUNA/UST crash seems to demonstrate, there is a higher risk for a product to become unsustainable. Hoskinson said the following on these events and the billions of dollars lost to hacks and other cyber attacks which have impacted crypto users since 2021:
if you move too quickly, as we’ve seen with Luna, and we’ve seen with $10.5 billion of hacks last year, you could actually get it to work until it doesn’t, and then when it doesn’t it’s a catastrophic failure and everybody loses their money.
Cardano could be the opposite in this case. The network has been constantly under development since its launch. Critics complain that this process might take too long.
Unlike other projects, Cardano took years before it was able to operate under a decentralized Proof-of-Stake (PoS) consensus protocol. In addition, it took several Hard Fork Combinator (HFC) events before the network implemented smart contract capabilities.
This adds to the critics that claim the network has been moving too slowly in the crypto space. As a response to these users, Hoskinson said IOG is “playing the long arc game”. Thus, he prefers to think about development in terms of years rather than months or weeks.
The CEO at IOG added:
We always say it’s not first, it’s best out of the gate. The people who are going to survive are those who are tested under stress and exhibit resiliency.
Better Safe Than Sorry? Cardano Inventor Bets On The Long Term
In that sense, Hoskinson said Cardano’s development progresses at a “slower” pace. However, he prefers this approach which contrasts with the rest of the crypto industry, in his opinion.
The CEO at IOG believes the space is incentivized to prioritize “speed over quality”. Thus, Hoskinson predicted that projects with a long-term vision and development will prevail over those focused on the short term.
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At the time of writing, ADA is one of the best-performing assets in the crypto top 10 by market cap. The cryptocurrency trades at $0.6 with a 12% and 17% profit in the last 24-hours and weekly chart, respectively.