Reddit posted a Reddit thread accusing Charles Hoskinson (inventor of Cardano) of running SundaeSwap. It went viral over the weekend. According to a pseudonym, Hoskinson obtained large amounts of ADA in order to profit from a rise in the price for SUNDAE (decentralized exchange native token).
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SundaeSwap has a lot of buzz because it is the DEX that was running Cardano’s first DEX. The ADA whale, according to the user, used his funds to queue jump other users and be one of the first to benefit from SUNDAE’s launch.
The pseudonym user based the accusations on three alleged facts: a large SUNDAE order was placed before the DEX was deployed, a wallet with millions of ADA was created specifically for this event, the funds can be tracked to another wallet with “a billion of unstaked ADA” or an entity sitting at the top of the Cardano rich list.
The pseudonym user claims the large transactions was linked to the inventor of Cardano after “about an hour clicking CardanoScan links”. A link was provided by the user containing addresses that are related to his claims. It can be viewed at this link.
A pseudonym user also mentioned the possibility of Charles Hoskinson being involved in a transaction with a crypto exchange, or another similar entity.
The addresses below the CardanoScan chain links are not exchange wallets. They can be scanned and you could try to determine which one is an exchange. But it seems to me like they are regular wallets. The sequence has only one input, and one output. It is easy to find.
Since IOHK, the company responsible for developing Cardano, was a key player on many of the projects or components on this network’s ecosystem, seems logical a large portion of ADA is linked back to them. However, the pseudonym user seems to believe that an important portion of the ADA supply in circulation can’t be linked to IOHK.
Inventor Of Cardano Replies To Accusations
Charles Hoskinson was the inventor of Cardano. He replied to the Reddit post and to the accusations. Hoskinson is available via his Twitter page said:
Have a look at these sundae Reddit postings. The funds appear to have come from Coinbase custody accounts that combine thousands of users.
Hoskinson then shared a link for a detailed investigation that Colin Edwards of IOHK, a Quantitative Strategyt, had done. Therein, he explains Cardano’s UTXO model and by using on-chain analysis tracks down the SundaeSwap frontrunner.
Edwards posted the transactions that “jumped the queue” and the tools he employed to conduct his investigation. He eventually concluded that Coinbase Custody had been used by the wealthy client. IOHK’s Quant said a subpoena, product of a legal procedure, could identify the actor. Quant added that:
(…) practically all Ada is within 3 transactions of being on an exchange where it would have mixed with funds originating from IOHK. Having funds originating from IOHK deposited at a large custody company, along with funds from thousands of others, is a statistical certainty – not a smoking gun.
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ADA currently trades at $0.93, with a profit of 9.2% in the past 24 hour. The 9Th crypto by market cap seems to be following the general sentiment in the market as it bounces back from the lows amid Russia’s invasion of Ukraine.
