Cardano (CRYPTO: ADA) founder Charles Hoskinson said he lost over $2.5 billion in the past four years, explaining that crypto’s failure wasn’t about technology—it was about government involvement that destroyed the bull market everyone expected.
Industry Expected Bull Market, Got Chaos Instead
Hoskinson told The Wolf Of All Streets Podcast that the industry expected Trump’s election to pump crypto bags, but instead got chaos.
Most cryptocurrencies have fallen 40-50% since Trump took office, showing the industry is unhealthy under current leadership.
He jokingly compared crypto’s current state to Japan in 1946.
The industry survived the FTX collapse, Luna implosion, and former SEC Chair Gary Gensler’s enforcement campaign, only to face new problems when the government got involved.
Trump Memecoin ‘Catastrophic’ For Bipartisan Support
Hoskinson called the Official Trump (CRYPTO: TRUMP) meme coin launch catastrophic because it transformed crypto from a bipartisan issue with 70 Senate votes into a partisan weapon Democrats will use in midterm campaigns.
Before the launch, Democrats had constituents who owned crypto and donors from the industry.
Now they’ll campaign on the message that crypto equals Trump corruption, making it nearly impossible to pass meaningful legislation even if Republicans control Congress.
The strategic blunder goes deeper: Trump could have made two to three times more money launching a meme coin under a proper regulatory framework because it would have supercharged markets with institutional capital.
Instead, he launched into uncertainty and handed Democrats a political gift.
Why Crypto Failed Despite Trump Victory
Many retail holders are down 70-80% from their entry points and can’t justify another round of speculation to their families.
“Retail doesn’t want to come back. They’re just like my wife is going to divorce me if I keep buying this stuff because every time I say it’s going to 10x, I just get destroyed,” Hoskinson said.
The recovery bifurcated in 2025. Institutions bought Bitcoin (CRYPTO: BTC) through ETFs and structured products, driving BTC higher.
None of that capital trickled into the altcoin space, which stayed stagnant throughout the year.
$2.5 Billion Loss And What Comes Next
Hoskinson revealed losing over $2.5 billion in the past four years, pushing back against critics who claim it’s easy for wealthy founders to remain optimistic about crypto’s future.
The Genius Act that passed was essentially fan service for banks, allowing them to become stablecoin issuers. It didn’t help DeFi, didn’t help layer-one protocols, and didn’t address innovation.
Hoskinson pointed out the irony: everyone bought Bitcoin to avoid Wall Street control, and now institutions hold all the Bitcoin on behalf of other people.
This is the make or break year for crypto’s soul. Either Wall Street takes over completely, or the retail revolution happens with the fourth generation and the market returns to decentralization.
Image: Shutterstock
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