In an unexpected turn of events, Charles Hoskinson, the visionary founder of Cardano, finds himself disassociating from the fallout of a controversial tweet that inadvertently promoted the memecoin Freya, resulting in significant losses for investors.
Hoskinson’s Accidental Memecoin Promotion
Taking to the social media platform X (formerly Twitter), Hoskinson shared a heartwarming picture of himself with his dog, Freya. However, a seemingly innocent update on his furry companion took a wrong turn when he mistakenly tagged an X account associated with a canine-themed token sharing the same name as his pet.
Seizing the opportunity, the team behind the Cardano-native meme coin, $FREYA, exploited the situation, claiming that Hoskinson’s post about Freya was an endorsement of their cryptocurrency to his nearly one million followers.
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FREYA’s Rollercoaster Ride: Soaring 800% and Plunging Moments Later
The dubious claims led to an unprecedented surge in the meme coin’s price, skyrocketing by a staggering 800% to $0.1342 within 15 minutes. However, the fleeting rally quickly gave way to a sharp downturn as the token erased all gains, plummeting to $0.00847, as reported by Dexscreener. At the time of writing, FREYA was trading at $0.00842.
Unsurprisingly, disgruntled investors, nursing substantial losses, directed their ire at the Cardano boss, holding him responsible for their financial woes. Urging Hoskinson to exercise due diligence before tagging accounts on the X platform, they sought safeguards against a recurrence of such incidents.
Hoskinson’s Denial and Community Reaction
Hoskinson firmly denied any connection to the Cardano memecoin and other NFT projects in response to the controversy. He acknowledged the idea of creating art inspired by his life but clarified he neither endorses nor conducts due diligence on such initiatives.
Expressing gratitude for the community’s concerns, Hoskinson underscored that he does not commercially capitalize on such endorsements and has refrained from engaging in collaborations for such purposes. Rewrite the above in shorter sentences
Contrary to his recent denial, it is worth noting that Hoskinson had previously sought insights from his followers on Snek (SNEK), another Cardano-native meme coin that had gained notable popularity.
This unexpected development has left many Cardano enthusiasts in awe, considering Hoskinson’s well-known reputation for meticulous attention to detail. The incident serves as a cautionary tale about the potential pitfalls of social media interactions in the cryptocurrency space.