The collapse of Terraform Labs’ stablecoin TerraUSD (UST) and its native token (LUNA) was seen as a major setback for the cryptocurrency sector by many market analysts.
However, for the founder of Cardano (ADA), Charles Hoskinson, the fallout was an affirmation of a go-slow strategy for building a blockchain.
“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,” the ADA founder said in a recent interview published by CoinDesk.
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Hoskinson added that he and his business, IOG (previously IOHK), are growing the Cardano ecosystem slowly, playing the ‘long arc game,’ which is measured in years to decades rather than weeks or months.
“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.”
Cardano network growth
Furthermore, Hoskinson freely admitted that the process of developing Cardano is “a bit slower” compared to the method of developing other projects.
In point of fact, Cardano did not acquire the capacity to execute smart contracts until this past year, a full four years after the network went live, placing it well behind Ethereum and other similar blockchains.
Indeed, after the major Alonzo hardfork upgrade in September 2021, the Cardano blockchain ecosystem has seen tremendous growth – in terms of new features and updates.
The largest Proof-of-Stake (PoS) blockchain has added over 2,000 smart contracts since that date and is currently on 2,756, according to data from Cardano blockchain insights at the time of publication.
The unraveling of UST
Notably, UST, an algorithmic stablecoin that was supposed to keep its dollar value without the need for any kind of collateral, went bust this month, sending shockwaves across the crypto market.
Hoskinson said that the incident demonstrated the dangers of operating in a “space where financial incentives and market setups are structured in a way of speed over quality.”
According to the CEO of IOG, the crypto method that moves at a more leisurely pace will emerge victorious in the long run. The market will ultimately wake up and realize that ventures with a focus on the short term will “keep collapsing.”
Elsewhere, in a recent live stream, the mathematician stressed Cardano’s focus on doing only regulated business and said that he would continue to engage with organizations such as the DCC, the blockchain association, and others to identify opportunities for collaboration.
As things stand, Cardano is up almost 30% in a day becoming the second-biggest gainer among top 100 cryptos.
