Over the weekend, a Reddit post accusing Cardano inventor Charles Hoskinson of leading SundaeSwap users went viral. A pseudonymous user said that Hoskinson used a large amount of ADA to benefit from a price increase in the native decentralized exchange token, SUNDAE.
Related Reading | Cardano Price Goes Up and Down Amid SundaeSwap Launch
As one of the first DEXs to run on Cardano, there is a lot of hype surrounding SundaeSwap. The ADA whale, according to the user, used his funds to jump the queue of other users and be one of the first to benefit from the launch of SUNDAE.
The user of the pseudonym based the accusations on three alleged facts: a large SUNDAE order was placed before the DEX was implemented, a wallet with millions of ADA was created specifically for this event, the funds can be traced to another wallet with ” billion ADA.” ADA” or an entity that is at the top of the Cardano rich list.
The user of the pseudonym claims that the large transactions were linked to the inventor of Cardano after “about an hour of clicking the links on CardanoScan”. The user provided a link to addresses related to his claims which can be viewed at the link below.
Additionally, the user of the pseudonym addressed the possibility of a crypto exchange or similar entity being involved in the transaction in place of Charles Hoskinson by saying:
I do not believe that any of the addresses in the CardanoScan link chain below are exchange wallets. You can take a look at them and try to identify which one you think is an exchange, but it seems to me that they are normal wallets. Most of the addresses in the sequence have only one input and one output, so it was easy to trace.
Given that IOHK, the company responsible for the development of Cardano, was a key player in many of the projects or components of the ecosystem of this network, it seems logical that a large part of ADA is linked to them. However, the user of the pseudonym appears to believe that a significant portion of the circulating ADA supply cannot be linked to IOHK.
Cardano inventor responds to accusations
Cardano inventor Charles Hoskinson responded to the accusations and the Reddit post. Through his Twitter account, Hoskinson said:
I took a look at the Sundae Reddit posts that have been popping up. It appears that the funds came from a Coinbase escrow account that aggregates thousands of users.
Hoskinson later shared a link to a full investigation by Colin Edwards, a quantitative strategist at IOHK. There, he explains the Cardano UTXO model and, by using on-chain analysis, tracks down the SundaeSwap favorite.
Edwards published the transactions that “jumped the queue” and the tools he used to conduct his investigation. Ultimately, he concluded that a wealthy client likely using Coinbase Custody was behind the transactions. IOHK’s Quant said a subpoena, the product of a legal proceeding, could identify the actor. He added:
(…) virtually all of Ada is within 3 transactions of being on an exchange where it would have been commingled with funds from IOHK. Having funds from IOHK deposited with one large escrow company, along with funds from thousands of others, is statistical certainty, not irrefutable proof.
Related Reading | This is what Cardano founder Charles Hoskinson wants for Christmas
At press time, ADA is trading at $0.93 with a 9.2% gain in the last 24 hours. The ninth cryptocurrency by market cap appears to be following the general sentiment in the market as it rebounds from lows amid Russia’s invasion of Ukraine.
ADA with moderate gains on the daily chart. Source: ADAUSDT Trade View
This post Cardano Inventor Front-Ran SundaeSwap Users? Research sheds light
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